The Gujarat Authority for Advance Ruling (AAR) has ruled that the contract between Airbus and Tata Group’s company for the supply of aircraft to the defence ministry is a “composite supply”, and would attract 5 per cent goods and services tax (GST).
Under the terms of the contract, 16 of the 56 aircraft will be supplied by Airbus from Spain to the defence ministry in a fly-away condition.
For the remaining 40 aircraft, it entered into a contract with Tata Consultancy Services (TCS) for the manufacture and supply.
