Airports Authority of India (AAI) And the concession deal between Adani Thiruvananthapuram International Airport Limited is not a ‘transfer of business’ but a supply of service, hence it will attract GST. While giving this decision, the Kerala bench of GST Advance Ruling Authority (AAR) said that GST will be applicable on this agreement. This decision of Kerala AAR is contrary to the decision of Rajasthan and Gujarat Appellate Authority (AAAR) in the case of transfer of Jaipur and Ahmedabad airports and the decisions of Uttar Pradesh AAR in the case of Chaudhary Charan Singh International Airport in Lucknow. These authorities had ordered such transfers to be exempted from Goods and Services Tax (GST).
Therefore GST will be applicable
The airport authority, in its application before the AAR, said it has entered into a concessionaire deal with Adani Thiruvananthapuram International Airport Limited for the operation, management and development of the airport for 50 years. AAI had sought answers from AAR on several questions, such as whether the agreement involved transfer of business and whether such transfer would be exempted from GST. The AAR, in its judgment passed on January 10, said the concessionaire was supplying the service of developing the airport to the applicant, and hence GST would be applicable.
Agreement with MSEDCL
Two Adani Group companies – Adani Power and Adani Renewable Energy Fifty Five Limited will supply approximately 6,500 MW of power to Maharashtra State Electricity Distribution Company Limited (MSEDCL) under the agreement. Adani Power Limited said in a stock exchange filing that it has signed an agreement with MSEDCL for the supply of about 1,500 MW of power. “Adani Power Limited has entered into a power supply agreement (PSA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for supply of 1,496 MW (net) for a period of 25 years,” it said. Adani Green Energy Limited (AGEL) said in another information given to the stock market that its wholly owned subsidiary Adani Renewable Energy Fifty Five Limited has entered into a power purchase agreement with MSEDCL for the supply of about 5,000 MW of solar energy. Is.
