The Authority of Advance Ruling ( AAR ) in Madhya Pradesh has ruled that, Goods and Services Tax ( GST ) is not applicable to Transportation of Students and Staff to institute under contract carriage by Non-AC buses.
The applicant, Mrs.Bhavika Bhatia, Proprietor of Bhavika Travels, is in the business of providing services of hiring of vehicles under Contract Carriage. The applicant has entered into an agreement with Chameli Devi Institute of Technology and Management, Indore for transportation of their students and staff under contract carriage by Non-A/c buses.
The AAR bench comprising of Rajiv Agrawal, Member and Manoj Kumar Choubey, Member has observed that, “Services provided by the applicant for transportation of students and staff of the contracee’s Institute under contract carriage by non-air conditioned buses is exempt from GST as per clause (b) of S1. No. 15 of Notification No. 12/2017-Central Tax (Rate), dated 28.6.2017. However, the exemption will be valid only till the time the contract carriage fulfils the conditions laid down in the said notification”.
The AAR also clarified that, the ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104( 1 ) of the GST Act.
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