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TMI Blog2018 (12) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned in the said notification - the service provided by the applicant falls under ‘rent a cab’ service. Ruling:- 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. - AAR No. RAJ/AAR/2018-19/24 - - - Dated:- 2-11-2018 - NITIN WAPA AND HEMANT JAIN MEMBER Present for the applicant Shri Pradeep Jain, CA (Authorised representative) 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (b) non-airconditioned contract carnage other than radio taxi, for transportation passengers, excluding tourism, conducted tour, charter or hire or Nil Nil It is to mention that the meaning of contract carriage will have the same meaning as assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 which states that- contract carnage means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum- (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes- (i) a maxicab; and (ii) a motorcab notwithstanding the separate fares are charged for its passengers; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be. Explanation.-For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply of goods or services or both. The applicant submits that the exemption under notification no. 12/2017 Central Tax (Rate) dated 28.06.2017 has been granted in exercise of the powers conferred under section 11(1) of the CGST Act, 2017 and so it is very important to ascertain the applicability of exemption notification in the present case as if the exemption is admissible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or set down passengers not included in the contract anywhere during the journey, and includes- (i) a maxicab; and (ii) a motorcab notwithstanding the separate fares are charged for its passengers; Thus, the essential ingredient of a contract carriage is that it plies under a contract for a fixed set of passengers, and does not allow any other passenger to board or alight from the carriage at will. A contract carriage carries passengers as a group and cannot pick up passengers en-route. c. Since the rent-a-cab has not been defined under GST Act, we need to analyse the same word taking the help of Motor Vehicle Act, 1988. Dictionary meaning of Rent a cab is Taxi motor vehicle or vehicle means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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