Airports Authority of India (AAI) And the concession agreement between Adani Thiruvananthapuram International Airport Limited is not a “transfer of business” but a supply of services, so it will attract GST. Taking this decision, the Kerala bench of GST Advance Ruling Authority (AAR) said that GST will be applicable on this deal. 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 that such transfers be exempt from the Goods and Services Tax (GST).
Therefore, GST will be applied.
The airport authority, in its application before the AAR, said it had entered into a concession agreement with Adani Thiruvananthapuram International Airport Limited for operation, management and development of the airport for 50 years. AAI had sought answers from AAR on several questions, including whether the deal involved a transfer of business and whether such transfer would be exempt from GST. The AAR, in its judgment delivered on January 10, said that the concessionaire was providing airport development service to the petitioner and therefore, 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 had signed an agreement with MSEDCL for supply of around 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 provided 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 around 5,000 MW of solar power.
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