{"id":7170,"date":"2025-12-09T17:36:42","date_gmt":"2025-12-09T12:06:42","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7170"},"modified":"2025-12-09T17:36:42","modified_gmt":"2025-12-09T12:06:42","slug":"gst-on-dry-lease-of-aircraft-classified-under-hsn-9973-at-5","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/gst-on-dry-lease-of-aircraft-classified-under-hsn-9973-at-5","title":{"rendered":"GST on Dry Lease of Aircraft Classified Under HSN 9973 at 5%"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000410284\/dry-lease-of-aircraft-to-be-classified-under-hsn-9973-applicable-gst-rate-would-be-5-if-aircraft-not-used-for-personal-use\">In re : Agneet Sky Aviation (IFSC) Pvt. Ltd. (2025) 36 Centax 87 (A.A.R. - GST - Guj.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Vishal Malani<\/strong>, Member (Central Tax) &amp; <strong>Sushma Vora<\/strong>, Member (State Tax)<\/li>\n<li><strong>Shri Dhaval Shah<\/strong>, for the Applicant.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The applicant, a SEZ unit, entered into a dry lease agreement for helicopters without an operator, transferring exclusive possession, operational control, and full liability to the lessee, who managed all crew, maintenance, insurance, and operational costs. The agreement covered delivery of the helicopter with engines, accessories, and records, and contained no clause permitting the lessor to retake possession during the lease term. The applicant sought classification of the service under Heading 9973 and applicability of Sl. No. 17(iii) of <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2011%2F2017-CT%20(Rate)&amp;itemType=AP\">Notification No. 11\/2017-CT (Rate)<\/a>, Dated 28-06-2017. The matter was accordingly placed before the Authority for Advance Ruling (AAR).<\/p>\n<h2><em>AAR Held<\/em><\/h2>\n<p>The AAR held that Heading 9973 explicitly covers leasing or rental services without an operator. It was observed that explanatory notes aligned with the United Nations Central Product Classification (UNCPC) place aircraft leasing without operator within transport equipment services, mapped to SAC 997311. The aircraft or helicopter qualifies as goods being movable property within the GST scheme, and the agreement establishes transfer of right to use goods to the exclusion of the lessor while imposing full operational liabilities on the lessee, with no clause permitting re-transfer during the term. Consequently, dry leasing is classifiable under Heading 9973 and falls under Sl. No. 17(iii) of<a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2011%2F2017-CT%20(Rate)&amp;itemType=AP\"> Notification No. 11\/2017-CT (Rate)<\/a>, Dated 28-06-2017.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(2)%20S.T.R.%20161%20(S.C.)&amp;itemType=AP\">Bharat Sanchar Nigam Ltd. v. UOI<\/a> \u2014 2006 (2) S.T.R. 161 (S.C.) \u2014 Referred [Para 15]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2021%20(48)%20G.S.T.L.%20187%20(App.%20A.A.R.%20-%20GST%20-%20Kar.)&amp;itemType=AP\">Yulu Bikes (P.) Ltd.<\/a> \u2014 2021 (48) G.S.T.L. 187 (App. A.A.R. &#8211; GST &#8211; Kar.) \u2014 Referred [Para 4]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%201%2F2017-Central%20Tax%20(Rate)&amp;itemType=AP\">Notification No. 1\/2017-Central Tax (Rate)<\/a>, dated 28-6-2017<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2011%2F2017-CT%20(Rate)&amp;itemType=AP\">Notification No. 11\/2017-Central Tax (Rate)<\/a>, dated 28-6-2017<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2020%2F2019-C.T.%20(Rate)&amp;itemType=AP\">Notification No. 20\/2019-C.T. (Rate)<\/a>, dated 30-9-2019<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: In re : Agneet Sky Aviation (IFSC) Pvt. Ltd. (2025)&hellip;<\/p>\n","protected":false},"author":19,"featured_media":7180,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-7170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GST on Dry Lease of Aircraft Classified Under HSN 9973 at 5%<\/title>\n<meta name=\"description\" content=\"AAR ruled that dry leasing of aircraft or helicopters without operator falls under HSN 9973, with GST at 5% under Sl. 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