Chapter, Section or Heading: Heading 9973 (Leasing or rental services, with or without operator)

GST Tax Rate: 5%

Description:

(v) Leasing of aircrafts by an operator for operating scheduled air transport service or scheduled air cargo service by way of transaction covered by clause (f) paragraph 5 of Schedule II of the Central Goods and Services Act, 2017.
Explanation.-
(a) “operator” means a person, organisation or enterprise engaged in or offering to engage in aircraft operations;
(b) “scheduled air transport service” means an air transport service undertaken between the same two or more places operated according to a published time table or with flights so regular or frequent that they constitute a recognisable systematic series, each flight being open to use by members of the public;
(c) “scheduled air cargo service” means air transportation of cargo or mail on a scheduled basis according to a published time table or with flights so regular or frequent that they constitute a recognisably systematic series, not open to use by passengers.

Condition:

Provided that credit of input tax charged on goods used in supplying the service has not been taken
Explanation: This condition will not apply where the supplier of the leasing service is located in non-taxable territory.
[Please refer to Explanation no. (iv)]