MUMBAI: The Authority for Advance Rulings, Rajasthan (AAR), in the case of Airports Authority of India (AAI) relating to the transfer as a ‘going concern’ of the operations, management and development of the Jaipur International Airport to a special purpose vehicle of Adani Enterprises, has held that transaction is exempt from GST, owing to aspecific notification.
However, the AAR held that reimbursement of staff costs by the Adani SPV to AAI would be towards supply of manpower and hence be subject to GST at 18%.
AAI raised periodical invoices on the Adani SPV for reimbursement of salary/ staff costs. Here, the Rajasthan GST-AAR bench noted that select employees are not part of the transfer of business as a whole, till the time they are absorbed by the new entity.
