In re M/s Ascendas Services (India) Private Limited (GST AAR Karnataka)
a) Whether the value of bus passes distributed by the applicant to the commuters is to be included in the value of facilitation charges as per section 15(2) of the CGST Act, 2017 and KGST Act, 2017?
The Value of the bus passes distributed by the applicant to the commuters and the facilitation charges is to be included in the value of services provided by the applicant.
b) Whether the supply of service in the hands of the applicant could be classified as merely a supply of facilitation services between BMTC and the commuters?
Regarding the second question of “whether the supply of service in the hands of the applicant could be classified merely a supply of facilitation service between BMTC and the commuter”, the answer is in the “negative”.
Read AAAR Ruling in this case- Bus pass is not an actionable claim and liable to GST: AAAR
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
1. M/s Ascendas Services (India) Private Limited, (called as the `Applicant’ hereinafter), having GSTIN number 29AAACT7290C1Z9, has filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 and Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act.
2. The Applicant is a Private Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question:
a) Whether the value of bus passes distributed. by the applicant to the commuters is to be included in the value of facilitation charges as per section 15(2) of the CGST Act, 2017 and KGST Act, 2017?
b) Whether the supply of service in the hands of the applicant could be classified as merely a supply of facilitation services between BMTC and the commuters?
3. The applicant furnishes some facts relevant to the stated activity:
(a) The applicant is engaged in the business of operation and maintenance of ITPB. It is submitted that, apart from other services viz. operation and maintenance of electrical systems at common areas, building and civil repairs, maintenance of lifts etc., the Applicant also facilitates the service of transportation to the employees of the tenants of the business park (herein after referred to as ‘commuters’)
(b) it is further submitted that, for the provision of transport facilitation service, the Applicant has entered into a contract with Bangalore Metropolitan Transport Corporation (hereinafter referred to as ‘BNITC‘). BMTC is the sole public bus transport provider for Bengaluru, serving urban, sub-urban and rural areas and it provide.s people-centred services and commuter responsive service planning and promotion.
(c) In order to facilitate the service of transportation, the Applicant receives the following types of bus passes from BMTC for distribution:
– Non AC regular BMTC bus pass; and
– Combo bus pass which can be used for Non AC and AC buses
(d) BMTC requires the Applicant to collect a minimum of 50 bus passes from them and for every 50 passes, BMTC would allot I bus to the This would be in the nature of a chartered bus, which would provide transportation service between designated bus stops and ITPB, BMTC charges tax on the bus passes sold by it to the Applicant, wherever applicable.
(e) In the case of non-AC regular BMTC bus pass, BMTC does not charge GST since the same is covered in entry 15 of Notification No. 12/2017 dated June 28,2017, wherein the transportation of passengers in non -AC carriage under HSN code 9964 is exempt from CAST, The said entry is produced hereunder:
