The amount recovered as reimbursement towards fuel procured for use in the helicopter provided on rent to customer is required to be included in the value of services provided.
Valuation of supply— Section 15 of CGST Act— The issue involved in this case is whether the amount towards fuel is required to be included in the value of services provided by the appellant or otherwise.
The appellant has entered into a contract with ONGC for supply of Helicopters classifiable under Service Accounting Code 9966 i.e. “Rental services of aircraft including passenger aircrafts, freight aircrafts and the like with or without operator”. The appellant has submitted that it procures ‘ATF fuel’ on behalf of its customer as ‘Pure Agent’ and claims the said amount as reimbursement from the customer.
The advance ruling authority held that in terms of the valuation provisions under the GST legislation, amount recovered (at actual) by the appellant from the customer, for the fuel procured on behalf of the customer, is required to be included in the value of services provided by the appellant.
This authority find that the issue mentioned in the above case pertains to VAT and pertains to the pre-GST era and therefore cannot be made applicable to issues in the GST era where value of supply is governed by the provisions of Section 15 of the GST Acts, 2017 which elaborately discusses the valuation aspect of supply. Further, it has already been discussed in the foregoing paras, that the activity of reimbursement of amount of ATF received by the appellant from their customer, is aptly covered under Section 15(2)(c) of the CGST Act, 2017 and therefore the contention of the appellant that they have not ‘charged’ the cost of ATF to ONGC is not acceptable and does not hold water.
Held that—This authority confirm the Advance Ruling to the extent it has been appealed and hold that in terms of the valuation provisions under GST legislation, amount recovered as reimbursement by the appellant M/s. Global vectra helicorp ltd. from the customer, for the fuel procured for use in the helicopter provided on rent to customer is required to be included in the value of services provided by the Appellant.
The amount recovered as reimbursement towards fuel procured for use in the helicopter provided on rent to customer is required to be included in the value of services provided.
Valuation of supply— Section 15 of CGST Act— The issue involved in this case is whether the amount towards fuel is required to be included in the value of services provided by the appellant or otherwise.
The appellant has entered into a contract with ONGC for supply of Helicopters classifiable under Service Accounting Code 9966 i.e. “Rental services of aircraft including passenger aircrafts, freight aircrafts and the like with or without operator”. The appellant has submitted that it procures ‘ATF fuel’ on behalf of its customer as ‘Pure Agent’ and claims the said amount as reimbursement from the customer.
The advance ruling authority held that in terms of the valuation provisions under the GST legislation, amount recovered (at actual) by the appellant from the customer, for the fuel procured on behalf of the customer, is required to be included in the value of services provided by the appellant.
This authority find that the issue mentioned in the above case pertains to VAT and pertains to the pre-GST era and therefore cannot be made applicable to issues in the GST era where value of supply is governed by the provisions of Section 15 of the GST Acts, 2017 which elaborately discusses the valuation aspect of supply. Further, it has already been discussed in the foregoing paras, that the activity of reimbursement of amount of ATF received by the appellant from their customer, is aptly covered under Section 15(2)(c) of the CGST Act, 2017 and therefore the contention of the appellant that they have not ‘charged’ the cost of ATF to ONGC is not acceptable and does not hold water.
Held that—This authority confirm the Advance Ruling to the extent it has been appealed and hold that in terms of the valuation provisions under GST legislation, amount recovered as reimbursement by the appellant M/s. Global vectra helicorp ltd. from the customer, for the fuel procured for use in the helicopter provided on rent to customer is required to be included in the value of services provided by the Appellant.