Classification of service— In the instant case, the applicant has sought advance ruling on following questions-

(1) Whether the transfer of business by the Airport Authority of India to the M/s. Adani Lucknow International Airport Limited be treated as Supply u/s. 7 of the Central Goods and Service Tax Act, 2017 (“CGST”) viz-a-viz Uttar Pradesh State Goods and Service Tax Act, 2017 (“UPGST”)?

(2) Whether the transfer of business by Airports authority of india to M/s. Adani Lucknow International Airport Limited is treated as supply as going concern and covered in clause 4 of schedule II of CGST Act viz-a-viz UPGST?

(3) Whether the transfer of business by M/s. Airports authority of india to M/s. Adani Lucknow International Airport Limited is covered under the Entry No. 2 of the exemption notification No 12/2017 - Central Tax (Rate) dated 28-06-2017 issued u/s Section 11 of CGST Act 2017?

(4) If the answer is negative, then whether GST is leviable on the transfer of Existing assets (“RAB”), Aeronautical Assets, non-aeronautical assets and Capital work in progress by M/s. Airport Authority of India to the M/s. Adani Lucknow International Airport Limited?

(5) Whether the aforesaid transfer of asset be treated as services and the classification for the same?

(6) Whether the concession fees paid by M/s. Adani Lucknow International Airport Limited to M/s. Airports authority of india be treated as consideration for transfer of business?

(7) Whether GST is applicable on Monthly/Annual concession fees charged by the Applicant on the M/s. Adani Lucknow International Airport Limited? If yes at what rate?

(8) Whether GST is leviable on the invoice raised by the Applicant for reimbursement of the salary/ staff cost on M/s. Adani Lucknow International Airport Limited ? If yes at what rate?

(9) Whether GST is applicable on the reimbursement claimed of Municipal tax, Property Tax and Water Charges by the Applicant from M/s. Adani Lucknow International Airport Limited? If yes at what rate?

(10) Whether any reversal is required in accordance with section 17 (2) / (3) of CGST Act viz-a-viz UPGST Act?

Held that— 

1. The Subject Supply of 'Transfer of Going Concern service' is Supply under Section 7 CGST Act, 2017.

2. The subject Supply is 'Transfer of Going Concern Service' and the same is not covered in clause 4 of schedule II of CGST Act viz-a-viz UPGST.

3. The subject Supply is covered vide Entry No. 2 of Notification 12/2017-Central Tax (Rate) dated 28.06.2017.

4. Concession fees paid by M/s. Adani Lucknow International Airport Limited to M/s. Airports authority of india will not be treated as consideration for transfer of business.

5. GST is not applicable on Monthly/Annual concession fees charged by the Applicant on the M/s. Adani Lucknow International Airport Limited.

6. GST is leviable @18%  on the invoice raised by the Applicant for reimbursement of the salary/ staff cost on M/s. Adani Lucknow International Airport Limited

7. Reversal is required in accordance with section 17 (2) / (3) of CGST Act viz-a-viz UPGST Act