Home Case Index All Cases GST GST + AAR GST - 2020 (9) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 585 - AAR - GSTValuation - inclusion of reimbursement (at actual) of fuel expenses - Pure agent - Rental services of aircraft including passenger aircrafts, freight aircrafts and the like with or without operator - Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- Payment made or to be made by the recipient to the applicant would not only include the payment for the supply of services i.e. “Rental services of aircraft including passenger aircrafts, freight aircraft and the like with or without operator” but would also include the amount for the fuel filled in the aircraft by the applicant. Therefore, the amount of ATF fuel, which is received as reimbursement by the applicant will undoubtedly form a part of the ‘consideration’ i.e. the value of the services provided by the applicant and GST is liable on the same. Therefore, in terms of Section 15(1) of the CGST Act, 2017, ‘the value of supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole ‘consideration’ for the supply - In the instant case, where the applicant and the customer are unrelated parties, the price actually paid or payable for the supply of services includes the value of services i.e. “Rental services of aircraft including passenger aircrafts, freight aircraft and the like with or without operator” as well as the amount for the fuel filled in the aircraft by the applicant, which would be the sole consideration for the supply as per the said section. Whether the applicant satisfies all the conditions and satisfies the conditions of a pure agent? - HELD THAT:- The conditions to satisfy the term "Pure Agent" fails in the present case. In terms of the valuation provisions under GST legislation, amount recovered as reimbursement (at actual) by the applicant M/s. Global Vectra Helicorp ltd. from the customer, for the fuel procured on behalf of the Customer is required to be included in the value of services provided by the Applicant.
|