In re Pawanputra Travels (GST AAR Rajasthan)
The applicable GST rate on supply of non-air-conditioned vehicles on hire to Indian Army?
The Service provided by the applicant is not exempted under Notification No. 12/2017 dated 28.06.2017 as this Service does not fall under ‘non-airconditioned contract carriage’ category. The service provided is ‘rent a cab’ Service, which attracts IGST @ 5% (CGST @ 2.5% and SGST @ 2.5%) provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle) has not been taken Or IGST @ 12% (CGST @ 6% and SGST @ 6%) if input tax credit is availed.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING RAJASTHAN
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by M/s Pawanputra Travels {hereinafter the applicant} is fit to pronounce advance ruling as it falls under ambit of the Section 97(2) (b), (e) it is given as under:-
b. Applicability of a notification issued under the provisions of this Act;
c. Determination of the liability to pay tax on any goods or services or both;
Further, the applicant being a registered person, GSTIN is 08AAIFP7583M1ZE, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the application is ‘admitted’ to pronounce advance ruling.
1. SUBMISSION OF THE APPLICANT:
The applicant have been awarded contract for providing both air conditioned and non-airconditioned vehicles on hire to the Indian Army. A copy of agreement and letter of Intent is submitted by the applicant along with application.
The applicant has raised invoices on Indian Army by charging GST on all types of vehicles (air conditioned and non-air conditioned) supplied by them. However, the Indian Army has not reimbursed them GST on non-air conditioned vehicles provided by them on the grounds that no GST is payable on non-air conditioned contract carriages as per serial no. 15 of exemption notification no. 12/2017-Central Tax (Rate) dated 28.06.2017. The applicant has also submitted a letter dated 31.05.2018 regarding return of invoices wherein GST has been charged by the applicant on non-air conditioned vehicles.
2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
The applicable GST rate on supply of non-air conditioned vehicles on hire to Indian Army.
3. APPLICANT’S INTREPRETATION: –
a. The applicant submits that there is exemption with respect to transportation of services by a non-air conditioned contract carriage vide serial no. 15 of the exemption notification no. 12/2017 Central Tax (Rate) dated 28.06.2017 which reads as follows:-
