Case Law Details
In re Maha Voyage LLP (GST AAR Kerala)
Introduction: In the case of Maha Voyage LLP seeking an advance ruling from the GST AAR Kerala, the focus is on the taxability of providing passenger buses on rent/lease to Kerala State Road Transport Corporation (KSRTC). The applicant questions whether GST is applicable at 18% under Tariff Heading 9966 or if the services are exempted under Notification No.12/2017-CT(R) dated 28/06/2017.
Detailed Analysis: Maha Voyage LLP, a registered Limited Liability Partnership, entered into an agreement with KSRTC for leasing 10 Multi Axle Air Conditioned buses. The agreement covers various aspects, including the lease period, specifications, maintenance, and trained drivers. The applicant argues that they are liable to pay GST at 18% under Tariff Heading 9966, as they provide buses, drivers, and maintenance services, and the consideration does not include the cost of fuel.
KSRTC, however, claims exemption under Notification No.12/2017-CT(R) dated 28/06/2017, asserting that the services fall under “giving on hire to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers.” The applicant contends that the services fall under the residuary entry of rental services of transport vehicles, attracting an 18% GST rate.
The applicant emphasizes the distinction between renting and hiring, stating that they have transferred the right to use the buses to KSRTC, making it a rental transaction. They refer to legal precedents to support their interpretation, stating that their activity aligns with renting rather than hiring.
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