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2019 (11) TMI 528 - AAR - GSTActivity of transportation of their students and staff under contract carriage by Non-A/c buses - Benefit of exemption from GST - Applicability of serial no. 15(b)(HSN/SAC Code 9964) of exemption Notification No. 12/2017 (Rate) dated 28-06-2017 as amended HELD THAT - As per the agreement, the vehicles to be provided by the applicant under contract carriage to the said Institute are non-air conditioned and are for transportation of students and staff of the said Institute - As per clause (b) of above SI. No. 15 of Notification No. 12/2017-Central Tax (Rate), dated 28.6.2017, the services of transportation of passengers, with or without accompanied belongings, by non-air-conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire is exempt from GST. Considering the various clauses of the Agreement entered into by the applicant with Chameli Devi Institute of Technology and Management, Indore, it is clear that the applicant is providing the services of transportation of students and staff of the contracee's Institute under contract carriage, and the said transportation of students and staff is by non-air conditioned buses. Therefore, it will be exempt from GST as per clause (b) of SI. No. 15 of Notification No. 12/2017-Central Tax (Rate), dated 28.6.2017. As the service is exempt, the question for rate of tax, not considered.
Issues:
1. Applicability of exemption Notification No. 12/2017 (Rate) dated 28-06-2017 for transportation services. 2. Rate of GST applicable if the service is taxable. Analysis: Issue 1: Applicability of exemption Notification: The applicant, registered under GST, provided transportation services under contract carriage to an institute. The applicant sought clarification on the applicability of exemption under serial no. 15(b) of Notification No. 12/2017 (Rate) dated 28-06-2017. The concerned officer opined that the service provided falls under the exemption clause. During the personal hearing, the applicant reiterated that the transportation services were exempt as per the notification. The Authority examined the agreement and relevant provisions. It was noted that the services of transportation of students and staff by non-air conditioned buses under contract carriage are indeed exempted from GST as per the specific clause in the notification. The ruling confirmed that the services provided by the applicant are exempt from GST under the mentioned clause, subject to compliance with the conditions outlined in the notification. Issue 2: Rate of GST if taxable: Since the ruling confirmed the exemption under the notification for the transportation services provided by the applicant, the question regarding the rate of GST applicable if the service was taxable was not addressed. The ruling stated that as the first question was answered in the affirmative, the second question regarding the GST rate was not considered. The ruling clarified that the exemption would remain valid as long as the conditions specified in the notification were met. The ruling was deemed valid unless declared void under the relevant provisions of the GST Act. This detailed analysis of the judgment highlights the key issues, the arguments presented, the examination of relevant provisions, and the final ruling provided by the Authority for Advance Ruling in Madhya Pradesh.
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