In re MH Ecolife E-Mobility Pvt. Ltd. (GST AAR Maharashtra)
GST @ 12% chargeable on supplying, operating, and maintaining air-conditioned electrically operated buses with ITC
The Maharashtra Authority of Advance Ruling (AAR) in Re: MH Ecolife E-Mobility Pvt. Ltd. (Advance Ruling No. 60/2020-21/B-116 dated December 22, 2021) held that services by way of supplying, operating, and maintaining air-conditioned electrically operated buses would be chargeable @ 12% with Input Tax Credit (ITC) and @ 5% without ITC.
Facts:
MH Ecolife E-Mobility Pvt. Ltd., Maharashtra (Applicant) and Navi Mumbai Transport Undertaking (NMMT) have entered into an Operator Agreement dated February 25, 2020 (Agreement) wherein the Applicant was responsible for the following:
- Procure and supply air-conditioned electric buses to NMMT on gross contract basis to be plied on routes identified by NMMT.
- Ownership of the buses was vested with the Applicant.
- Operating and maintaining the buses by employing drivers and other staff necessary for the operation and maintenance of buses.
- Incurring all the expenses for operating the buses including expenses on repairs and maintenance, procurement of spare parts, charging of batteries etc.
- The Applicant shall be paid an amount on the basis of kilometers logged by the buses.
- The fuel used to run the buses is electricity with help of Lithium Ion batteries fitted in the buses.
And, NMMT or a third party appointed by NMMT, was responsible to collect appropriate fare from the passengers.
Issues:
