Supply of goods from shops located in security hold area of airport can’t be considered as export of goods: AAAR
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- Last Updated on 24 August, 2022
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Case Details: Appellate Authority for Advance Ruling, Delhi Rod Retail (P.) Ltd., In re - [2022] 141 taxmann.com 345 (AAAR-Delhi)
Judiciary and Counsel Details
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- Smt. Mallika Arya & Ankur Garg, Member
- Ashok K. Bhardwaj & Manish Hirani, Advs. for the Applicant.
Facts of the Case
The appellant was engaged in business of retail sale of sunglasses and one outlet was situated at Terminal-3, IGI Airport, New Delhi. It filed an application for advance ruling to determine whether supply to outbound international passengers going abroad would be treated as zero rated exports under GST.
AAAR Held
The Authority for Advance Ruling held that outlet was situated in India and hence the supply would not be treated as exports under GST. It filed appeal against the order.
The Appellate Authority for Advance Ruling observed that shops located in security hold area (SHA) of Airport are to be covered within India in terms of Section 2(56) of CGST Act read with Section 2(27) of Customs Act. The sales effected from such area can’t be considered as export of goods to fall within ambit of zero-rated supply and not to be treated at par with duty free shops. Therefore, supply of goods to outbound international travellers within taxable territory would be treated as taxable supply attracting GST at applicable rates.
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