In re Public Transport Department Government of Andhra Pradesh (GST AAR Andhra Pradesh)
The Applicant, an arm of the State Government, operates public transport facilities under the aegis of the Andhra Pradesh State Road Transport Corporation (APSRTC). The services provided by the Applicant include passenger transport and courier/GTA services, utilizing bus stands that also generate revenue through rentals, lease, and licenses.
Factual Background
A key facility provided at the bus stands is lavatories and toilets for the use of passengers, staff, and the public. The Applicant licenses third parties (contractors or individuals) through a tender process to maintain, clean, and repair these public toilets, thereby ensuring hygienic and safe facilities.
The core transaction is that the Applicant, as the owner, enters into an agreement with the winning bidder (licensee). This licensee is granted permission, or a license, to operate the toilets. The licensee pays a fixed monthly license fee to the Applicant. While the licensee collects a nominal fee of Rs. 5/- from the users (passengers/public), the Applicant itself does not collect any money from the users. Evidence from an agreement showed a licensee paying a monthly fee of Rs. 3,09,999/- plus GST @ 18% and a security deposit.
Questions Raised Before the AAR
