The Gujarat Authority for Advance Ruling has held that the Project Office of Airbus Defence and Space S.A. (Spain) is liable to pay GST in India on the supply of 40 C-295MW aircraft manufactured by Tata Advanced Systems Ltd. (TASL) in Vadodara and delivered to the Ministry of Defence, and must obtain GST registration in the State of Gujarat where the manufacture, procurement and delivery take place. The ruling by Members Sushma Vora and Vishal Malani in GUJ/GAAR/R/2026/34 (M/s Airbus Group India Pvt. Ltd., decided 11.09.2026) establishes that the entire chain of transactions — procurement of aircraft from TASL (inward supply) and subsequent sale to MoD (outward supply) — occurs within the taxable territory and constitutes supply of goods under Section 7(1)(a) read with Entry 1(a) of Schedule II.
Under the Aircraft Contract dated 24.09.2021, 16 aircraft are delivered ex-works from Spain (outside India) and 40 aircraft are manufactured in India by TASL at its Final Assembly Line in Vadodara. The Project Office, treated as a distinct person from the Spanish parent under Explanation 1 to Section 8 of the IGST Act, procures the aircraft from TASL in Gujarat and delivers them ex-works to MoD at the same facility. No exemption was found available for aircraft under Notification No. 10/2025-CT (Rate). The ruling noted that TASL would apply GST at 5% (HSN 8802) and the Project Office could avail ITC on such procurement. A similar AAR order had been issued by the Haryana AAR on the same question.
- 2026-juristway.com-2620-AAR(Gujarat)-GST | AAR Gujarat | GUJ/GAAR/R/2026/34 | 11.09.2026