Goods and Services Tax – Started By: – Rushab Jain – Dated:- 18-6-2018 Last Replied Date:- 15-8-2018 – We are running a business of transportation of school students. We had an formal agreement with the school that we will provided services of transportation of school students. However we do not receive any consideration from school nor we raise any invoice on school. Entire consideration is received from school students directly. Now my question is whether these services is taxable or exempt?If it is taxable or exempt please specify under which head i.e service to educational institution or transport of passenger – Reply By YAGAY and SUN – The Reply = NIL Rate of GST is applicable on followings.Education (pre-school to high secondary) including-(i) transportation of students, teachers and staff;(ii) mid-day meals and other catering(iii) security and house-keeping services performed in schools(iv) admission to, or conduct of examination by, such institution upto higher secondary. – Re
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deration from the students directly, alternatively you can charge gst @ 2.5% vide Sl. No. 8 (vi) of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as amended subject to the condition 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. – Reply By Alkesh Jani – The Reply = Sir, Please confirm you turnover. is it above threshold limit?Thanks – Reply By KASTURI SETHI – The Reply = With due regard, I express my opinion as under :- Ultimat goal is exemption to education that is not to tax student. If Notification 11/17 – CT Rate comes into play, the very purpose of exemption to education will be defeated. – Reply By KASTURI SETHI – The Reply = Threshold exemption is secondary issue. Primary issue is whether exemption ava
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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. According to the definition, service recipient in my case are school students( means parents) as consideration is received from them, then I think in my case it would be a taxable supply. Please clarify, I might be wrong in interpretation. Thanks – Reply By KASTURI SETHI – The Reply = No person can pay any tax on one's own volition. In this situation, Service Receiver is student and not parents. Nobody can deny it. You can write name of student, class, school and parents'name on the invoice. This supply of service is fully exempted. You require to prepare invoice as documentary evidence of service provided to education institution. Are students not part of educational institutions ? Main beneficiary of this exemption is student and you wa
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CCEX, Kanpur dated 10-1-2017 where in CESTAT Allahabad held in favour of the assessee. However this is Service Tax Case law , can we apply it in GST for our reference in Maharashtra though it is of Allahabad?Thanks Once Again – Reply By KASTURI SETHI – The Reply = Dear Queries, Let me examine this case law in detail.Thereafter I would be able to express my opinion. – Reply By Alkesh Jani – The Reply = Sir, My intention to ask the turnover, was that, if the transporter s aggregate turnover, is below threshold limit, GST Act is not applicable and if the turnover is above threshold limit, applicability of Act and Notification can be discussed. Assuming the turnover of transporter is above the threshold limit, than my view is that, the services are provided to the passengers (here student) and not to educational Institute. Even in case of educational Institute, the exemption is available upto Higher Secondary level, so the exemption to Student of above Secondary level is not extended. When
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Please justify / clarify.Thanks – Reply By KASTURI SETHI – The Reply = Issue is being deviated. I still stick to my views. However, if you want to be tension-free, opt for advance ruling. Without advance ruling, no officer will give clear cut reply. Only last resort is AAR. – Reply By YAGAY and SUN – The Reply = Yes, Advance Ruling will sort out your issue definitely. – Reply By Rushab Jain – The Reply = Dear Sir,I had gone through your post and noted that it will be better to have advance ruling from the Department. However will request you to give your final comments considering the case law Sangam Travels vs. CCEx, Kanpur decided by CESTAT allahabad .Thanks – Reply By Alkesh Jani – The Reply = Sir,The clarification as requested by you is that, a contract may be written or verbal, if executed. In your case, you agreed to pick up the student and to drop at the school with agreed consideration, is nothing but execution of contract. The same thing is mentioned in last para of my reply.
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