CBIC Excludes Omnibus from Passenger Transportation Services; Exception for Companies Provide Services via E-Commerce Operator

The Central Board of Indirect Taxes and Customs (CBIC), vide notification no. 16/2023 has notified the exclusion of omnibus from the passenger transportation services, however there is an exemption for companies providing services via E-Commerce operators. The notification shall come into force on October 20,2023.

In exercise of the powers conferred by sub-section (5) of section 9 of the Central Goods and Services Tax Act, 2017, the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.17/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 696(E) dated the 28th June, 2017, namely:-

In the said notification,

(i.) in clause (i), for the words “omnibus or any other motor vehicle”, the words “or any other motor vehicle except omnibus” shall be substituted;

(ii.) after clause (i), the following clause shall be inserted, namely:-

            “(ia) services by way of transportation of passengers by an omnibus except where the person supplying such service through electronic commerce operator is a company.”;

(iii.) in the Explanation, after item (c), the following item shall be inserted, namely, – “(d) “Company” has the same meaning as assigned to it in clause (20) of section 2 of the Companies Act, 2013(18 of 2013).”

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