Implications of GST on Passenger Transportation Services

1. Background and our understanding:

1.1 Zolo Traveltech Private Limited (hereafter referred as ‘The Company’). The Company has a place of business at Haryana in India. The Company is mainly engaged in the business of “Passenger Transportation Services” via Offline booking mode and Online booking mode through Electronic Commerce Operator like Paytm, Red Bus. Bookings are also received through agents for which they are paid agreed commission.

1.2 The Company took Air-conditioned buses on hire and use them for providing passenger transportation.

1.3 The Company operates within state as well as cross-state passenger transportation services.

1.4 Major Supplies are in nature of B2C.

1.5 Buses running on long routes stays on contracted restaurants for which they receive commission for referring Customer.

1.6 The company incurs cost on changing of outlook & renovation of buses (Affixing Zolo Bus Logo and other details).

2. Objective

Considering the above facts about business model, The Company wants to understand the implications of the provisions under CGST Act, 2017 & CGST Rules, 2017 regarding:

A. Invoicing.

B. GST Rates.

C. Input Tax Credit.

D. Charging Section, Taxability, Classification, Place of supply, Time of Supply, Valuation.

E. Accounts & Records required to be maintained.

F. Other Relevant Definitions under CGST Act, 2017.

3. Discussions of the legal provisions:

3.1 Invoicing:

Relevant provisions of CGST Act & CGST Rules, 2017 in regards to

A. Tax Invoice: As per section 31(2), A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which––

(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or

(b) tax invoice may not be issued.

B. Tax invoice Rules.

As per Rule 46 of CGST Rules,

Subject to rule 54, a tax invoice referred to in section 31 shall be issued by the registered person containing the following particulars, namely,

(a) Name, Address and GSTIN of the supplier;

(b) A consecutive serial number not exceeding 16 characters, in one or multiple series, containing alphabets or numerals or special characters- hyphen or dash and slash symbolized as ―-ll and ―/ll respectively, and any combination thereof, unique for a financial year;

(c) Date of its issue;

(d) Name, address and GSTIN, if registered, of the recipient;

(f) Name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than fifty thousand rupees and the recipient requests that such details be recorded in the tax invoice;

(g) SAC for services;

(h) Description of goods or services;

(k) Taxable value and Total Value of the supply of goods or services or both taking into account discount or abatement, if any;

(l) Rate of tax and amount of tax charged in respect of taxable goods or services (CGST, SGST, IGST, UTGST or cess);

(n) Place of supply along with the name of the State, in the case of a supply in the course of inter-State trade or commerce;

(o) Address of delivery where the same is different from the place of supply;

(p) Whether the tax is payable on reverse charge basis; and

(q) Signature or digital signature of the supplier or his authorized representative:

Provided also that a registered person[other than the supplier engaged in making supply of services by way of admission to exhibition of cinematograph films in multiplex screens,] may not issue a tax invoice in accordance with the provisions of clause (b) of sub-section (3) of section 31 subject to the following conditions, namely,-

(a) the recipient is not a registered person; and

(b) the recipient does not require such invoice, and

shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.

In our case:

The company may follow the proviso mentioned just above, The Company may not issue a tax invoice in accordance with the provisions of clause (b) of sub-section (3) of section 31 since in most of the case our recipients are not registered but in that case the company shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies.

As per Rule 54(4), Where the supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under rule 46.

Provided that the signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of ticket in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000).

In our case:

The company may follow the Rule 54(4) just mentioned above, the company may issue tax invoice in form of ticket, it may either serially numbered or not, it may either contain the address of the recipient of service (Passengers) or not, but containing other information as mentioned above under rule 46.

For Eg: The Company may follow Invoice series (Zolo/Paytm/date0001, Zolo/Redbus/18120003, Zolo/General/19129999)

Further the signature or digital signature of the supplier or his authorized representative shall not be required in the case of issuance of ticket in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000). Since most of tickets issued by the company are computerized.

3.2 GST Rates :

HSN: 9964

Heading of Service: Passenger transport services

Description of Service:

Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.

GST Rate (CGST & SGST each)		Condition attached
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. [Please refer to Explanation no. (iv)
6 %		Full ITC (No restriction)

We have identified GST Implication under different scenario as under

Eg. We have Received Total Inward Supply of Rs. 5,00,000 plus 18% ITC 90,000 Total Amount 5,90,000 (Same line of ITC is 10,000 & Other ITC is 80,000) and provide Output Supply (Including GST) of Rs. 11,76,000 (100 Tickets of Rs. 11760) each.

Now if we fix the ticket price at 11760 then Taxable Value

Case 1. If Output tax rate is 5% then Taxable value is 11760/(100/105) = 11,200 (Total Taxable Value 11,200*100 = 11,20,000)

• Output liability @5% on 11,20,000 = 56,000
• ITC Allowed (Same Line) = 10,000
• Net Payable = 46,000
• Revenue earned = 11,20,000
• Cost to Company = 5,80,000 (5 lakh + 80,000 ITC Disallowed)
• Net Benefit = 5,40,000

Case 2. If Output tax rate is 12% then Taxable value is 11760/(100/112) = 10,500 (Total Taxable Value 10,500*100 = 10,50,000)

• Output liability @12% on 10,50,000= 1,26,000
• ITC Allowed (Full ITC)= 90,000
• Net Payable= 36,000
• Revenue earned= 10,50,000
• Cost to Company= 5,00,000
• Net Benefit= 5,50,000

Here out of above 2 cases discussed, Case 2 is Beneficial.

But if Other ITC were 50,000 only instead of 90,000, then in that situation, Case 1 will be beneficial (Since in that case Cost to company will be 5,50,000 (5,00,000 + 50,000 Disallowed ITC) Net benefit= 5,70,000

In above 2 cases Documentation become easy; we have to maintain Proper working of Input Tax Separately same line of business and All other ITC along with Purpose of utilization of ITC [for eg. exclusive for Business purpose (eg. Bus hiring charges) exclusive for exempted supply, common services (Rent of office, maintenance charges)]

• By Analyzing above case we have reached to a conclusion & derived a Formula; Which GST Rate is beneficial to The Company:
  • Lets suppose Total Ticket Collection amount (Including GST) = $$
  • Formula

[$$*(12/112)=0.10714($$)]

Less-[$$*(5/105)=0.047619($$)]

= 0.059521($$) or 5.9521% of Total Ticket Collection amount (Including GST) should be Equal to Other ITC

Analysis  

√ If Other ITC is Equal to 5.9521% of Ticket Price then = Both options are beneficial

√ If Other ITC is less than 5.9521% of Ticket Price then = 5% Rate is beneficial

√ If Other ITC is Higher than 5.9521% of Ticket Price then = 12% Rate is beneficial

Case 3.

We can follow both GST Rates 5% as well as 12% but working for ITC and Output liability part will become too complex to maintain.

Lets Suppose we follow 5% rate for 50% Ticket Collection and 12% for Balance 50%

Taxable value is 11760/(100/112) = 10,500 (Total Taxable Value 10,500*100*50% = 5,25,000) Taxable value is 11760/(100/105) = 11,200 (Total Taxable Value 11,200*100*50% = 5,60,000)

• Output liability @12% on 5,25,000 = 63,000
• Output liability @5% on 5,60,000 = 28,000
• Total Liability = 91,000
• ITC Allowed (Full ITC) = 45,000 (50% of 90,000 to be reversed as per explanation(iv) mentioned above)
• Net Payable = 46,000
• Revenue earned = 10,85,000 (5,25,000 + 5,60,000)
• Cost to Company = 5,45,000 (5,00,000 + 45,000 ITC Reversal)
• Net Benefit = 5,40,000

3.3 Input Tax Credit.

All ITC allowed subject to condition that Section 16(2), 17, 18 has been complied with and unless blocked under section 17(5) of CGST, Act, 2017.

Relevant provisions of CGST Act & CGST Rules, 2017 in regards to

A. Eligibility and Conditions for taking Input Tax Credit: As per Section 16(2), no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, ––

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b) he has received the goods or services or both

Explanation — For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services–

-where the services are provided by the supplier to any person on the direction of and on account of such registered person.

(c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and

(d) he has furnished the return under section 39:

B. Apportionment of credit:

As per section 17(1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business.

As per section 17(2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act, and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.

C. Explanation No. (iv) mentioned in Notification No. 11/2017-Central Tax (Rate):

Wherever a rate has been prescribed in this notification subject to the condition that credit of input tax charged on goods or services used in supplying the service has not been taken, it shall mean that,

(a) credit of input tax charged on goods or services used exclusively in supplying such service has not been taken; and

(b) credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made there under.

In our case:

We have to reverse ITC to the extent is attributable to the purposes of Non-business as per section 17(1) and to the extent is attributable to the exempt supply as per section 17(2), and as per Point (b) of explanation (iv) mentioned above.

D. Blocked credits: Section 17(5)

Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:

(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;

(ii) for transportation of goods;

(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, referred to in clause (a):

Provided that the input tax credit in respect of such services shall be available —

(i) where the motor vehicles, vessels or aircraft referred to in clause (a) are used for the purposes specified therein;

(ii) where received by a taxable person engaged —

(a) in the manufacture of such motor vehicles; or

(b) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;

(b) the following supply of goods or services or both—

(i) food and beverages, outdoor catering, health services, leasing, renting or hiring of motor vehicles, referred to in clause (a) except when used for the purposes specified therein, life insurance and health insurance;

Provided that the ITC in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;

Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.

In our case:

• ITC shall be available to us since we receive inward supply and supplies outward supply of goods and services of the same category in case of following-
  • Food and beverages provided on board on conveyance (Bus) to passengers
  • Renting or hiring of AC Buses
• ITC shall be available on AC Buses if we purchase rather than taking them on hire
• Since we are using them for transportation of passengers
• ITC shall be available on services of general insurance, servicing, repair and maintenance in so far as they relate to AC Buses,
• ITC shall be available in respect of life insurance and health insurance if it is obligatory for an employer to provide the same to its employees under any law for the time being in force.
• ITC shall be available in respect of commission received for referring Customer to restaurant contracted.
• ITC shall be available on cost incurred on outlook change & renovation of buses as these costs are incurred in normal course of business.

3.4 Charging Section, Taxability, Classification, Place of supply, Time of Supply, Valuation.

A. Place of supply of services (Very Important in Our Case):

As per section 12(9) of IGST Act, 2017,

The place of supply of passenger transportation service to, —

(a) a registered person, shall be the location of such person;

(b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey:

Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in accordance with the provisions of sub-section (2).

Explanation. ––For the purposes of this sub-section, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time.

As per section 12(2) of IGST Act,

The place of supply of services, except the services specified in sub-sections (3) to (14)

(a) made to a registered person shall be the location of such person;

(b) made to any person other than a registered person shall be, ––

(i) the location of the recipient where the address on record exists; and

(ii) the location of the supplier of services in other cases.

As per section 12(10) of IGST Act,

The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.

B. Inter-State supply

As per Section 7(3), Subject to the provisions of section 12, supply of services, where the location of the supplier and the place of supply are in––

(a) two different States;

(b) two different Union territories; or

(c) a State and a Union territory, shall be treated as a supply of services in the course of inter-State trade or commerce.

C. Intra-State supply

As per section 8(2), Subject to the provisions of section 12, supply of services where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply:

Explanation 1.- For the purposes of this Act, where a person has, ––

(i) an establishment in India and any other establishment outside India;

(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or

(iii) an establishment in a State or Union territory and any other establishment registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.

Explanation 2.- A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory.

D. Location of the supplier of services:

Section 2 (71), “Location of the supplier of services” means,

(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business;

(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and

(d) in absence of such places, the location of the usual place of residence of the supplier;

In our case:

Since the company is carrying on business ordinarily from various states. So, Location of the supplier of services will be deemed to be located at these states.

E. Supply: As per section 7(1)(a), Supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

F. Place of business:

As per Section 2 (85) “Place of business” includes–

(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or

(b) a place where a taxable person maintains his books of account; or

(c) a place where a taxable person is engaged in business through an agent, by whatever name called;

In our case:

Since the company is carrying on business ordinarily from various states. So, place of business will be deemed to be located at these states.

G. Fixed establishment:-

As per section 2(50), “fixed establishment” means a place (other than the registered place of business) which is characterized by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs;

In our case:

Analysis:  

By studying above provisions, it is concluded that for Determining whether a supply is a Inter­state supply or Intra state supply it is relevant to study definitions of Location of supplier of service and provisions regarding Place of supply.

Let’s understand our case via an example:

• Suppose our head office is in Haryana and our buses operates in Haryana, Delhi, UP, Punjab, Rajasthan;
• Scenario 1:- Let suppose Bus named “Haryana-Delhi Express” scheduled 15 Dec, 2019 @ 10:00 AM, and all passenger embarks from Haryana, bus reached Delhi at 11:00 AM same day. Location of the supplier of services will be Haryana and Place of supply also will be Haryana since passenger embarks on the conveyance is from Haryana. So, it is a intra state supply and CGST & SGST will be levied.
  • In this example if few passengers embark in Delhi itself then it will be treated as interstate supply and accordingly IGST shall be levied.
• Scenario 2:- Let suppose Bus named “Delhi-Haryana Express” scheduled 15 Dec, 2019 @ 12:00 PM, and all passenger embarks from Delhi, bus reached Delhi at 01:00 PM same day. Location of the supplier of services will be Delhi and Place of supply also will be Delhi since passenger embarks on the conveyance is from Delhi. So, it is a intra state supply and CGST & SGST will be levied.
  • In this example if few passengers embark in Haryana itself then it will be treated as interstate supply and accordingly IGST shall be levied.

Further, if any person book tickets of return journey at the time of booking of onward journey as well, then in that case, the return journey shall be treated as a separate journey, even if the right to passage for onward and return journey is issued at the same time. Place of supply shall be taken as if return journey is a separate journey.

Further if any goods or services are supplied on board a conveyance for which we charge separately then place of supply shall be the location of the first scheduled point of departure of that conveyance for the journey.

The Company has to take registration in all states in which they operate

H. Time of supply of services: As per section 13, (1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.(2) The time of supply of services shall be the earliest of the following dates, namely:—

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of 23 section 31 or the date of receipt of payment, whichever is earlier; or

(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of 24 section 31 or the date of receipt of payment, whichever is earlier;

In our case:

Normally Date of Payment & issuance of invoice will same (at the time of booking). So, time of supply will be that date

I. Valuation:

As per section 15(1), The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.

As per section 15(2), The value of supply shall include––

(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier;

(b) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;

(c) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.

Explanation – For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy.

As per section 15(3),

The value of the supply shall not include any discount which is given––

(a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and

(b) after the supply has been affected, if—

(i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and

(ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply.

In our case:

value of a supply of services or both shall be the transaction value charged in ticket (excluding GST), but it may include charges for food and any other ancillary service if provided to passengers for which separate consideration has not been charged. Now it’s up to the business practice of the company how it collects charges for ancillary service, whether inclusive of exclusive.

J. Tax liability on composite and mixed supplies:

As per section 8,

The tax liability on a composite or a mixed supply shall be determined in the following manner, namely: —

(a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and

(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.

As per section 2(30),

“Composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

As per section 2(90),

“Principal supply” means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary;

Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;

In our case:

If we supply food or other ancillary services to passengers and charge price for these services in ticket including with transportation charges, then it is a case of composite supply since these services are ordinarily provided in course of business and naturally bundled with principal service and here in this case principal supply is passenger transportation service since it constitutes the predominant element of a composite supply and food is ancillary service.

So as per section 8, GST Rate shall be same as applicable to principal service, as if provided solely.

K. Levy and Collection: As per section 9(1), Subject to the provisions of sub-section (2), CGST & SGST shall be levied on all intra-State supplies of goods or services or both on the value determined under section 15.

3.5 Accounts & Records

A. Accounts and other records: As per section 35(1), Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of—

• Inward and outward supply of goods or services or both;
• Input tax credit availed;
• Output tax payable and paid;
• Goods or services imported or exported;
• Supplies attracting payment of tax on reverse charge; and
• Credit notes, debit notes;
• E-way bills;
• Bills of supply;
• Receipt vouchers;
• Payment vouchers
• Refund vouchers;
• Self-invoice (in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both);
• Accounts of stock in respect of goods received and supplied;
• Separate account of advances received, paid and adjustments made thereto;
• An account, containing the details of tax payable, tax collected and paid, input tax, input tax credit claimed, together with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period;
• Names and complete addresses of suppliers from whom goods or services, chargeable to tax under the Act, have been received”;
• Names and complete addresses of the persons to whom supplies have been made;
• Accounts showing the quantitative details of goods used in the provision of services, details of input services utilized and the services supplied;
• Electronic back-up of records;
• Such other particulars as may be prescribed.

Provided that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business:

Provided further that the registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed.

3.6 Other Relevant Definitions under CGST Act, 2017.

A. Section 2(5), “Agent” means a person, including a factor, broker, commission agent, arhatia, delcredere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another;

B. Section 2(6), “Aggregate Turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

C. Section (17), “Business” includes––

(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;

D. Section 2(31), “Consideration” in relation to the supply of goods or services or both includes–– -any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;

E. Section 2(34), “Conveyance” includes a vessel, an aircraft and a vehicle;

F. Section 2(41), “Document” includes written or printed record of any sort and electronic record as defined in clause (t) of section 2 of the Information Technology Act, 2000;

G. Section 2(44) “Electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

H. Section 2(45) “Electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

I. Section 2(59) “Input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;

J. Section 2(60) “Input service” means any service used or intended to be used by a supplier in the course or furtherance of business;

K. Section 2(62) “Input tax” in relation to a registered person, means the CGST, SGST, UTGST, IGST charged on any supply of goods or services or both made to him and includes—

(a) the IGST charged on import of goods;

(b) the tax payable under the section 9(3) and 9(4) of the CGST Act;

(c) the tax payable under the section 5(3) and 5(4) of the IGST Act;

(d) the tax payable under the section 9(3) and 9(4) of the SGST Act; or

(e) the tax payable under the section 7(3) and 7(4) of the UTGST Act,  but does not include the tax paid under the composition levy;

L. Section 2(63) “Input tax credit” means the credit of input tax;

M. Section 2 (66) “Invoice” or “Tax invoice” means the tax invoice referred to in section 31;

N. Section 2 (67) “Inward supply” in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means with or without consideration;

O. Section 2 (70) “Location of the recipient of services” means,

(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;

(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;

(c) where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply; and

(d) in absence of such places, the location of the usual place of residence of the recipient;

P. Section 2(76) “Motor vehicle” shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988;

Q. Section 2 (86) “Place of supply” means the place of supply as referred to in Chapter V of the Integrated Goods and Services Tax Act;

R. Section 2 (93) “Recipient” of supply of goods or services or both, means—

(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration;

(b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and

(c) where no consideration is payable for the supply of a service, the person to whom the service is rendered,

and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;

S. Section 2 (102) “Services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;

T. Section 2 (105) “Supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.

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The above analysis on “Implications of GST on Passenger Transportation Services” is based on Bare  CGST Act, 2017 & CGST Rules, 2017 and information and explanation shared with us about business model of company, is only for discussion purposes.

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