Chartered Flight or Passenger Transport

The Supreme Court, in Civil Appeal No. 9743/2025, listed for hearing on 25th September 2025, will decide whether chartered flight services constitute “Passenger Transport” or “Supply of Tangible Goods for Use (STGU).” Although the dispute arises under the service tax regime, its outcome has direct implications under GST, particularly for Input Tax Credit (ITC) eligibility. The case, originating from agreements between Reliance Commercial Dealers Ltd. and Reliance Industries Ltd., brings into focus the fine line between passenger transport and aircraft hire, with consequences for corporates, the aviation sector, and the exchequer. A snapshot by J the App by JustIDT