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TMI Blog2019 (6) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... e or as an element of a taxable composite or mixed supply. Passenger transportation service is classified under SAC 9964. Transportation of passengers, with or without accompanied belongings, is taxable under Sl No. 8 of Notification No. 11/2017-CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135 - FT dated 28/06/2017), as amended from time to time (hereinafter collectively called the Rate Notification) - Renting of any motor vehicle, however, is classified under SAC 9966. It is taxable under Sl No. 10(i) of the Rate Notification. The recipient of this service is not a passenger. He is enjoying the service of having provided a motor vehicle, with or without a driver, for use in whatever way he likes for the duration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST Act. - Case Number WBAAR 09 of 2019 Order number 06/WBAAR/2019-20 - - - Dated:- 10-6-2019 - MR. SYDNEY D SILVA, AND MR. PARTHASARATHI DEY, MEMBER Preamble Applicant s representative heard: Sambit Das, Authorized Representative A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called the GST Act ), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice should, therefore, be admissible in terms of section 17(5)(a)(B) of the GST Act. He submits photocopies of a few invoices, showing that the invoices are made on the distance travelled. 3. Submission of the Revenue 3.1 The concerned officer from the Revenue submits that the GST Act did not allow credit of GST paid on inputs for supply of rent-a-cab service in terms of section 17(5)(b)(iii) of the Act. However, the provisions of the Act have since been amended. The above restriction is removed with effect from 01/02/2019. Post-amendment, admissibility of input tax paid on the purchase of motor vehicles to be used for supply of rent-a-cab service should, therefore, be examined in terms of section 17(5)(a)(B) of the GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amely- (A) a further supply of such motor vehicles; or (B) transportation of passengers: or (C) imparting training on driving such motor vehicles. The Applicant argues that rent-a-cab service qualifies to be treated as a supply of passenger transportation service. 4.4 Passenger transportation service is classified under SAC 9964. Transportation of passengers, with or without accompanied belongings, is taxable under Sl No. 8 of Notification No. 11/2017-CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135 - FT dated 28/06/2017), as amended from time to time (hereinafter collectively called the Rate Notification). As obvious from reference to the accompanied belongings, the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce travelled. The recipient has to pay a fixed amount whether or not the cab is moved. If, however, the cab travels beyond a threshold, the rent is calculated as a cost-plus, taking the distance travelled into account. As apparent from Sl No. 10(i) of the Rate Notification, the essential character of the service remains the same even when the cost of fuel is included in the consideration charged. 4.7 In para 4.4 and 4.5 this Authority has explored the scope of two relevant SAC: 9964 and 9966. In passenger transportation service (SAC 9964) the recipient of the service is a passenger and he pays the consideration for the distance travelled, whatever be the degree of control he enjoys over the vehicle. In renting or hiring of a motor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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