The Karnataka Authority of Advance Ruling has held that the ‘Engineering design’ and the other technical advisory services that are specifically undertaken in India amounts to supply under the heading ‘Intermediary services’.
Here in this case the applicant is Airbus Group India Private Limited providing Engineering design and technical advisory services that include
- Marketing support,
- Flight operations support, flight maintenance training,
- Customer support services
- Flight pilot training, and so on
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Furthermore, they also provide agency services, repairs and overhaul services, maintenance, renting of assets, and trading of the spares and major or minor parts of various types of helicopters.
The applicant was seeking the “advanced ruling on the issue of whether the activities that are carried out in India shall amount to”
“Intermediary service specified under HSN code 9961/9962 or”
“Other support services” falling under the heading of HSN code 9985 or
Any other classification of services under GST
The other issue that was questioned was whether the transaction in the aforesaid question is considered a Zero-Rated Supply or normal supply as per the GST Act
The Coram of Mashood Ur Rehman and Dr. Ravi Prasad M.P. passed a ruling that the activities that are carried out in India by the applicant shall amount to supply within the domain of “Intermediary services that are classifiable under the category SAC 998599”.
The AAR further passed a ruling that the services that are rendered by the applicant cannot be categorized as export of services and so are subject to GST at the rate of 18% of entry number 23 of Notification bearing number 11/2017-Central Tax ® bearing date June 28, 2017.
