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GST Applies to C-295 Aircraft Supply to MoD: Gujarat AAR

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Summary

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  • The Gujarat Authority for Advance Ruling has determined that Airbus Defence and Space S.A. is liable to pay GST on the supply of forty C-295 aircraft to the Ministry of Defence.
  • The ruling confirms that the aircraft, manufactured in India by Tata Advanced Systems Ltd., constitute "goods" under Section 7 of the CGST Act, 2017.
  • Airbus must also obtain GST registration in Gujarat due to the substantial transaction value exceeding the threshold limit.
  • This decision could set a precedent for future transactions involving foreign manufacturers supplying goods within India.

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