Airbus aircraft supply to Defence Ministry subject to GST, says AAR
The Authority for Advance Rulings (AAR) has determined that the supply of 40 Airbus aircraft to the Defence Ministry is taxable under GST, requiring proper GST registration in Gujarat.
The ruling applies to Tata Advanced Systems, which is assembling the aircraft in Vadodara as part of Airbus' ₹21,935-crore contract with India's Ministry of Defence. The AAR's decision clarifies the tax treatment of this major defence procurement project.
