The AAI had approached the Rajasthan bench of the Authority for Advance Ruling (AAR) seeking a ruling on whether the transfer of the business to Adani Group is treated as supply as 'going concern' and whether GST is leviable on the transfer of assets.

Transfer of business as a going concern, as a whole, or an independent part thereof, is considered a service under GST law.

In 2021, October the Adani Group took over the operations, management, and development of the Jaipur International Airport from the Airport Authority of India (AAI). The airport has been leased out to the group by the government of India for a period of 50 years.

The Rajasthan, Gujarat, and Uttar Pradesh benches had ruled that business arrangements between AAI and Special Purpose Vehicle (SPV) are covered under transfer of going concern.

The invoice raised by the Airport Authority of India (AAI) for reimbursement of salary /staff cost at Adani Jaipur International Airport Ltd is a supply that falls under the ambit of manpower service and is hence taxable at 18% under the GST.

According to AMRG & Associates Senior Partner Rajat Mohan, AAR has ruled that considerations received from the transfer of running a business of whole airport operations by the Airport Authority of India are tax-neutral supply.