In Re: M\/s. Pawanputra Travels,
GST
2018 (12) TMI 1157 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2019 (21) G. S. T. L. 328 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 2-11-2018
AAR No. RAJ\/AAR\/2018-19\/24
GST
NITIN WAPA AND HEMANT JAIN MEMBER
\nPresent for the applicant Shri Pradeep Jain, CA (Authorised representative)
\nNote: 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 from the date of service of this order.
\nThe Issue raised by M\/s. Pawanputra Travels {hereinafter the applicant} is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (b), (e) it is given as under:
\nb. Applicability of a notification issued under the provisions of this Act;
\ne. Determination of the liability to pay tax on any goods or services or both;
\nFurther, the applicant being a <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e applicant has also submitted a letter dated 31.05.2018 regarding return of invoices wherein GST has been charged by the applicant on non-air conditioned vehicles. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nor specified in clause (b) and accordingly, in their view, they cannot be considered as 'non-air conditioned contract carriage' eligible for exemption under the serial no. 15 of the exemption notification no. 12\/2017 Central Tax (Rate) dated 28.06.2017. However, the service receiver in their case is contending that they are covered by the exemption notification and no GST is payable to the government. Therefore, the applicant request you to kindly examine whether they are eligible for claiming the benefit of exemption contained at serial no. 15 of the exemption notification no. 12\/2017 Central Tax (Rate) dated 28.06.2017 or not. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t may, on the recommendations of the Council, by special order in each case, under circumstances of an exceptional nature to be stated in such order, exempt from payment of tax any goods or services or both on which tax is leviable. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n de in the application for advance ruling and requested that the case may be decided at the earliest. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n any other passenger to board or alight from the carriage at will. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e (b) of clause (7) of section 2 of the Motor Vehicles Act, 1988 and accordingly, they cannot be considered as 'non-air conditioned contract carriage' and are hence not eligible for exemption under the serial no. 15 of the exemption notification no. 12\/2017 Central Tax (Rate) dated 28.06.2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Pawanputra Travels,GST2018 (12) TMI 1157 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2019 (21) G. S. T. L. 328 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AARDated:- 2-11-2018AAR No. RAJ\/AAR\/2018-19\/24 GSTNITIN WAPA AND HEMANT JAIN MEMBER Present for the applicant Shri Pradeep Jain, CA (Authorised representative) Note: Under Section … Continue reading “In Re: M\/s. Pawanputra Travels,”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15617","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15617"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15617\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
\nThe applicable GST rate on supply of non-air conditioned vehicles on hire to Indian Army.
\n3. APPLICANT'S INTREPRETATION:-
\na. The applicant submits that there is exemption with respect to transportation of services by a non-air conditioned contract carriage vide serial no. 15 of the exemption notification no. 12\/2017 Central Tax (Rate) dated 28.06.2017 which reads as follows:-
\nS.No.
\nChapter, Section, Heading, Group or Service Code (Tariff)
\nDescription of Services
\nRate %
\nCondition
\n15
\nHeading 9964
\nTransport of passengers, with without accompanied belongings, by –
\n(b) non-airconditioned contract carnage other than radio taxi, for transportation passengers, excluding tourism, conducted tour, charter or hire or
\nNil
\nNil
\nIt is to mention that the meaning of 'contrac<\/p>\n
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\nb. The applicant further submits that they have already paid GST on the supply of non-air conditioned motor vehicles supplied by them on hire to Indian Army but the service receiver is not reimbursing them the amount of GST on the grounds that the supply is covered by absolute exemption under serial no. 15 of the exemption notification no. 12\/2017 Central Ta<\/p>\n
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\n(3) The Government may, if it considers necessary or expedient so to 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.
\n 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 pe<\/p>\n
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\n5. FINDINGS, ANALYSIS AND CONCLUSION:
\na. The present application for advance ruling has been filed to seek decision on the applicability of GST on the service of providing non-air conditioned motor vehicles on hire to Indian Army on contract basis for a period of one year.
\nb. The serial no. 15 of the exemption notification no. 12\/2017 Central Tax (Rate) dated 28.06.2017 which reads as follows:-
\nS.No.
\nChapter, Section, Heading, Group or Service Code (Tariff)
\nDescription of Services
\nRate (%)
\nCondition
\n15
\nHeading 9964
\nTransport of passengers, with without accompanied belongings, by –
\n (b) non-airconditioned contract carriage other than radio taxi, transportation passengers, excluding tourism, conducted tour, charter or hire; or
\nNil
\nNil
\nIt is pertinent to mention that it is provided that the meaning of 'contract carriage' will have the same meaning as assigned to it<\/p>\n
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\nA 'contract carriage' carries passengers as a group and cannot pick up passengers en-route.
\nc. 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.
\nDictionary 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 exceeding thirty-five cubic centimeters;
\n“Radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a<\/p>\n
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\nThus, the essential ingredient of a contract carnage 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 carnage at will.
\nA 'contract carnage' carries passengers as a group and cannot pick up passengers en-route.
\ne. Even if the contract is assumed as 'non-airconditioned contract carriage', even then, serial no. 15 of the exemption notification no. 12\/2017 Central Tax (Rate) dated 28.06.2017 does not exempt it from GST, as the “hired” non-airconditioned contract carriage are 'excluded' from exemption as specifically mentioned in the said notification.
\nf. It is hence concluded that the service provided by the applic<\/p>\n
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