In re M/s Bhavika Bhatia (GST AAR Madhya Pradesh)
Services provided by the applicant for transportation of students and staff of the contracee’s Institute/college under contract carriage by non-air conditioned buses is exempt from GST as per clause (b) of SI. No. 15 of Notification No. 12/2017-Central Tax (Rate), dated 28.6.2017. However the exemption will be valid only till the time the contract carriage fulfils the conditions laid down in the said notification.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MADHYA PRADESH
1. The present application has been filed u/s 97 of the Central Goods and Services Act, 2017 and MP Goods and services Act, 2017 (hereinafter also referred to CGST Act and SGST Act respectively) by M/s BHAVIKA BHATIA (hereinafter referred to as the Applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE:
3.1. The applicant, Mrs.Bhavika Bhatia, Proprietor of Bhavika Travels, Jaora Compound, Indore is registered under GST having GSTIN23AJUPB8817B1ZC. The applicant is in the business of providing services of hiring of vehicles under Contract Carriage.
3.2 The applicant has entered into an agreement with Chameli Devi Institute of Technology and Management, Khandwa Road, Indore for transportation of their students and staff under contract carriage by Non-A/c buses.
4. QUESTIONS RAISED BEFORE THE AUTHORITHY:-
The following questions have been posted before the Authority in the application:-
4.1. Applicability of serial no. 15(b)(HSN/SAC Code 9964) of exemption Notification No. 12/2017 (Rate) dated 28-06-2017 as amended, for said activity?
4.2. If taxable, its rate of GST?
5. CONCERNED OFFICER’S VIEW POINT:
The concerned officer is his view point submitted that the services provided by the applicant for transportation of students and staff of the contracee’s Institute under contract carriage by non-air conditioned buses is exempt from GST as per clause (b) of SI. No. 15 of Notification No. 12/2017-Central Tax (Rate), dated 28.6.2017.
6. RECORD OF PERSONAL HEARING:
6.1. Shree Sunil M Jain, CA appeared for personal hearing and reiterated the submissions already made in the application. They reiterated the facts submitted along with the application. The Applicant states that –
6.2. We are into business of providing services of Contract Carriage (Non-A/c) for transportation of students, staff for college (Not limited to hiring of vehicle, as driving/conducting/maintenance staff pertains to us).
6.3 It is pertinent to mention that neither our agreement permits nor we have collected GST separately.
6.4. Applicant believes that the services of transportation of students and staff of college to and from college on contractual basis will be covered under “transportation of passengers by non-air conditioned contact carriages” which is exempted from payment of tax by virtue of exemption Not. 12/2017 Central Tax(Rate) dated 28-06-2017. At the time of hearing the applicant gave list of 17 vehicles their registration certificate, agreement between the applicant and the principal Chameli Devi institute of management, village Umarikheda khandwa road indore, the contract permit by RTO and the buses in contract are non AC buses certified by RTO.
6.5. Relevant extract of serial no. 15(b)(HSN/SAC Code 9964) Not. 12/2017 Central Tax (Rate) dated 28-06-2017 as amended and a copy of contract is enclosed.
7. DISCUSSIONS AND FINDINGS:
7.1 The applicant believes that the services of transportation of students and staff of college to and from college by non-air conditioned buses under contract carriage will be covered under “transportation of passengers by non-air conditioned contact carriages” which is exempted from payment of tax as per SI. No. 15(b) of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017.
7.2 The Applicant has submitted a copy of Agreement with Chameli Devi Institute of Technology and Management, Khandwa Road, Indore. As per said agreement, the vehicles to be provided by the applicant under contract carriage to the said Institute are non-air conditioned and are for transportation of students and staff of the said Institute.
7.3 The SI. No. 15 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017 reads as under :
