Case Law Details
In re Muniyasamy Abhinaya (GST AAR Tamilnadu)
In a recent ruling by the Authority for Advance Ruling (AAR) in Tamilnadu, the GST applicability for school transport services was examined. The case involved Smt. Muniyasamy Abhinaya, an individual proprietor planning to provide transportation services exclusively to students and staff of certain schools. This article delves into the AAR’s decision and its implications.
Detailed Analysis:
GST Applicability: The primary question was whether GST would apply to the transportation services offered by the applicant. It was clarified that the services would be exclusively provided to students and staff of higher secondary schools under agreements with the schools. Importantly, the bus and van permits would be in the name of the respective schools. The AAR referred to Notification No. 12/2017-Central Tax (rate) dated 28.06.2017, specifically SI.No.66(b). This provision exempts transportation services provided to educational institutions, provided the institution is up to the higher secondary level or equivalent. As the applicant’s services fall within this exemption criteria, they are exempt from GST.
Payment Collection: The ruling addressed the collection of transportation charges from parents. Since the services were exempted from GST, the fees collected directly from parents for picking up and dropping off their children were also not subject to GST.
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