The Authority for Advance Ruling (AAR) has declared that no Goods and Services Tax (GST) will be applicable on the transfer of Jaipur International Airport’s operations, management and development to the Adani Group from the Airports Authority of India (AAI). The AAI had approached the AAR for a ruling on whether the transfer of the business to the Adani Group would be considered as a ‘going concern’ supply and whether GST was leviable on the transfer of assets.

In October 2021, the Adani Group took over the operations, management and development of Jaipur International Airport from AAI on a 50-year lease from the government of India. The Rajasthan, Gujarat, and Uttar Pradesh benches had already ruled that the business arrangements between AAI and the Special Purpose Vehicle (SPV) were covered under the transfer of a going concern. AAR has ruled that the considerations received from the transfer of the entire airport operations by AAI are tax-neutral supplies.