2026-VIL-141-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - Passenger Transportation Service - Place of supply and taxability of passenger transportation services on international passenger air transportation where passenger boards from outside India and travels to India – Applicant contended that where a passenger boards from Dhaka, Bangladesh and travels to Kolkata, India, the place of embarkation is outside India and therefore the supply is not taxable in India - Whether the place of supply being outside India, the transaction falls outside the charging provisions of the GST Acts - HELD - The place of supply of passenger transportation service is determined with reference to Section 13(10) of the IGST Act, 2017 where the location of the supplier or recipient is outside India. The place of supply is the place where the passenger embarks on the conveyance for a continuous journey. In this scenario, the place of embarkation is outside India. Since the place of supply is outside India, the transaction does not fall within the ambit of the GST charging provisions. No GST is leviable in India on such supplies – Accordingly, no GST is applicable on passengers boarding from outside India and coming to India - GST - Place of supply and taxability of passenger transportation services - Whether GST is leviable on international passenger air transportation where passenger boards from India and travels to foreign country - Petitioner contended that where a passenger boards from Kolkata, India and travels to Dhaka, Bangladesh, the supply originates in India through the Indian branch and the place of embarkation is Kolkata - Whether the place of supply being within India, CGST and SGST are leviable - HELD - Section 12(9) of the IGST Act, 2017 applies where both the supplier and recipient are located in India. The place of supply is the place where the passenger embarks on the conveyance for a continuous journey, which in this case is Kolkata, West Bengal. Since the location of the supplier and the place of supply are both in West Bengal, the supply is treated as an intra-state supply under Section 8 of the IGST Act. The supply is accordingly liable to CGST and SGST at the applicable rate - For a passenger travelling in economy class where the supplier does not avail the corresponding input tax credit, the applicable tax rate is 5% GST. For a passenger travelling in any class other than economy class, the applicable rate is 18% GST - The Advance Ruling is issued holding that CGST and SGST are applicable on passengers boarding from India for flights to foreign countries - GST - Place of supply and taxability of passenger transportation services - Continuous journey with single ticket - Whether GST is leviable on international passenger air transportation where passenger holds a single ticket from a foreign country to India with a transit stop in an intermediate location - HELD - Section 13(10) of the IGST Act, 2017 applies where either the supplier or the recipient is located outside India. The place of supply is determined with reference to the place where the passenger embarks on the conveyance for a continuous journey - A transit stop for a short duration does not constitute a stopover as defined in the explanation clause to Section 2(3) of the IGST Act. A stopover involves a break in the journey with a change of aircraft and transshipment of luggage, whereas a transit stop is an intermediate landing where the aircraft briefly stops without the passenger disembarking to leave the airport. The transit stop does not break the continuity of the journey undertaken by the passenger from the point of embarkation to the final destination. Since the first point of embarkation is London, which is outside India, the place of supply is outside India. The transaction does not fall within the ambit of the GST charging provisions and no tax is leviable - The Advance Ruling is issued holding that no GST is applicable on passengers on continuous journey with single ticket from a foreign country to India with a transit stop - GST - Place of supply and taxability of passenger transportation services - Continuous journey with single ticket - Whether GST is leviable on international passenger air transportation where passenger holds a single ticket from India to a foreign country with a transit stop in an intermediate location - HELD - Section 12(9) of the IGST Act, 2017 applies where both the supplier and the recipient are located in India. The place of supply is determined with reference to the place where the passenger embarks on the conveyance for a continuous journey - A transit stop for a short duration does not break the continuity of the journey. It cannot be equated with stopover as defined in the explanation clause to Section 2(3) of the IGST Act. The transit stop in no way breaks the continuity of the journey undertaken by the passenger from Kolkata to London. The first point of embarkation is Kolkata, which is within West Bengal, India. The place of supply is accordingly Kolkata. Since the location of the supplier and the place of supply are both in the same State, the supply is treated as an intra-state supply under Section 8 of the IGST Act. The supply is accordingly liable to CGST and SGST at the applicable rate - For a passenger travelling in economy class where the supplier does not avail the corresponding input tax credit, the applicable rate is 5% GS. For a passenger travelling in any class other than economy class, the rate is 18% GST - The Advance Ruling is issued holding that CGST and SGST are applicable on passengers on continuous journey with single ticket from India to a foreign country with a transit stop - GST - Place of supply and taxability of passenger transportation services - Continuous journey with single ticket - Whether GST is leviable on international passenger air transportation where passenger holds a single ticket from one foreign country to another foreign country with a transit stop in India - HELD - Section 13(10) of the IGST Act, 2017 applies where either the supplier or the recipient is located outside India. The place of supply is determined with reference to the place where the passenger embarks on the conveyance for a continuous journey. A transit stop for a short duration does not constitute a stopover as defined in the explanation clause to Section 2(3) of the IGST Act. The transit stop in no way breaks the continuity of the journey undertaken by the passenger from Dhaka to London. Here both the supplier and the recipient are located outside India. The place of supply is the place of embarkation, namely Dhaka, which is outside India's taxable territory. The transaction does not fall within the ambit of the GST charging provisions and no tax is leviable - The Advance Ruling is issued holding that no GST is applicable on passengers on continuous journey with single ticket between two foreign countries with a stop in India - GST – Scope of Supply - Transportation of human remains by air - Whether transportation of human remains falls within the definition of supply under Section 7 of the CGST Act, 2017 - HELD - Section 7 of the CGST Act, 2017 includes all forms of supply for consideration in the course or furtherance of business. Schedule III appended to the CGST Act, 2017 specifies activities or transactions which shall be treated neither as a supply of goods nor a supply of services. Clause 4 of Schedule III refers to services of funeral, burial, crematorium or mortuary including transportation of the deceased. The services mentioned in Clause 4 are all related to services offered to a person after he passes away. It includes transportation of the deceased - Since transportation of the deceased is neither a supply of goods nor a supply of services, it does not come under the ambit of Section 7(1) of the CGST Act, 2017 and hence there is no question of any tax being imposed on such services - Transportation of human remains does not constitute a supply within the mea
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