GST Applies to Airport Levies: PSF and UDF Clarified u/r 33; Airlines as Pure Agents Exempt from GST Liability.

The circular clarifies the application of GST on airport levies such as Passenger Service Fee (PSF) and User Development Fee (UDF). It states that these fees, charged by airport operators, are subject to GST as they constitute consideration for services provided to passengers. Airlines, acting as agents, collect these fees from passengers but are not liable for GST on them if they meet the conditions of a "pure agent" under Rule 33 of the GGST Rules. The airport operators are responsible for paying GST on these levies, while airlines must pay GST on collection charges received from airport operators.

---

---

---