Supply of Aircraft Type Rating Training Services to Commercial Pilots is not GST Exempt: AAR

Case Details: Authority for Advance Rulings, Karnataka CAE Flight Training (India) (P.) Ltd., In re - [2023] 151 taxmann.com 54 (AAR-KARNATAKA)

Judiciary and Counsel Details

• • Dr. M.P. Ravi Prasad & Kiran Reddy T., Member
  • Syed M. Peeran for the Appellant.

Facts of the Case

The applicant was a training organization approved from Directorate General of Civil Aviation (DGCA). It was engaged in business of providing ‘type rating’ training on simulators for various fleet of aircraft to trainees aspiring to obtain licenses and ratings from DGCA in order to enhance skill and knowledge of trainees. It filed an application for advance ruling to determine whether such training services would be exempt under GST or not.

AAR Held

The Authority for Advance Ruling observed that the candidates who would receive training from applicant would be subjected to examination / test by DGCA approved examiner. It would be based on results of these examinations and fulfilment of other prescribed conditions that DGCA would endorse type rating of aircraft in license of trainee pilots. Therefore, the course completion certificate issued by applicant can’t said to be a certificate which would be recognized by law for time being in force.

Therefore, it was held that the supply of aircraft type rating training services to commercial pilots, in accordance with training curriculum approved by DGCA for obtaining extension of aircraft type ratings on their existing licenses, would not be covered under Serial No. 66 (a) of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017 and, thus, these services would be taxable under GST.