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TMI Blog2025 (3) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... students. And no entry is seen to have been made either on the Income side or on the Expenditure side of the Profit and Loss Account, as far as it relates to school, which goes to show that the applicant is neither receiving any amount from the school, nor paying any amount to the school. Under these circumstances, as the consideration towards the transportation activity are received in full by the applicant from the students concerned, and as no consideration is received by school administration, it becomes clear that no services are rendered by the school to the students in relation to transportation of students. Once it is clear that in effect, the school has outsourced the transport service to the applicant, and that the applicant is in direct receipt of the consideration from the students, the service rendered by the applicant to the students is to be considered as Transport of passenger by any motor vehicle', which merits classification under service SAC 9964, attracting GST at 5% without ITC as per Sl.No.8(vi) of Notification No. 11/2017, dated 28.06.2017, as amended vide Notification No.31/2017-Central Tax (Rate) dated 13.10.2017. Whether the services provided by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Advance Ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. Tvl. Batcha Noorjahan, proprietrix of M/s. School Transport at Flat No. 52, Amruth Enclave, Malai Theru, Ponmar, Kanchipuram 600 048 (hereinafter called as the "Applicant") is engaged in the business of plying school buses and providing transportation services to the school students in commuting to their school and back home. They are registered under the GST Acts with GSTIN 33AOGPN6397H1ZK. 2. The Applicant has made a payment of appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving 34 buses and are in agreement with four schools.. The applicant is providing only transportation service to school students and not providing the buses for any other purposes. The applicant has obtained transportation permit from Regional Transport Office for using the vehicle as school bus and are in lease agreement with the respective schools. The applicant is collecting the bus hire charges directly from the students as per the agreement with the school. Further stated that since the applicant is providing transport services to educational institutions, they are eligible to claim exemption provided under Sl.No.66 of Notification No.12/2017-C.T. (Rate) dated 28th June 2017 by way of 'transportation of students, faculty and staff'. 4.2. During the personal hearing, the Members requested the AR to submit the following documents at the earliest to proceed further in this case, viz., (i) Copies of agreement with school, (ii) IT returns for the last two years, (iii) To inform whether the applicant is the sole service provider to schools, (iv) Copies of the bills raised on the students, and (v) The nature of relationship with the schools. The AR agreed to furnish the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle and the services related thereto. Further, there was no mention in the lease agreement as to how the transportation fees are to be collected, whether by the applicant or by the school. 6.5. It is further mentioned in the lease agreement that the during the period of lease agreement, the lessee i.e., school, in the capacity of owner of the said vehicles shall have the liabilities to pay all taxes, fees, penalties, fine and other necessities and requirement arising of Motor Vehicle acting rule and Tamil Nadu Motor Vehicles Taxation Act, 1974. Whereas, it is seen from the copies of the receipts furnished by the applicant, that they have directly raised receipt on the student concerned, towards 'Student Transport Fees' as noticed from the sample copy of Receipt No.AB-201 dated 23.07.2024. On perusal of the same, it is seen that the said receipt has been issued under their trade name of "School Transport", Chengalpattu-600048, bearing GSTIN:33AOGPN6397H1ZK, wherein the transport fees along with GST at the rate of 5% (CGST 2.5% and SGST 2.5%) is seen to have been collected. 6.6. Though the lease agreement in the instant case is executed with the school administration, we o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 - Central Tax (Rate) dated 28th June 2017, is required to be examined, which is as extracted below:- Sl.No. Heading /Service Code Description of Services Rate Condition 66 Heading 9992 Services provided - (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Nil Nil The entry as above states clearly that services provided by way of transportation of students, faculty and staff are exempted, if the said services are provided to an educational institution. It is quite clear from the discussions above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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