Transportation of passenger services is to b levied with GST, According to the provisions of GST Law in India. However, there are a few exceptions, in the form of certain services relating to the transportation of passenger services, to this provision that exists as they have been given an exemption by the government vide notification number 12/2017 - Central Tax (Rate) dated 28th June 2017.
Passengers who are embarking or terminating in a state like Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or Bagdogra in West Bengal, who are accompanied by belongings, are exempt from GST on air transport.
Stage Carriage other than air-conditioned Stage Carriage is exempted from GST levy for Transportation of passengers with or without accompanied belongings.
According to the notification, stage carriage has the same meaning as stipulated in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988). A stage carriage is a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for individual stages.
Service of transportation of passengers, with or without accompanied belongings, by—
(a) other than (i) first class; or (ii) an air-conditioned coach; railways are exempted
(b) metro, monorail or tramway;
© sea passage or inland waterways;
(d) public transport in a vessel between places located in India other than predominantly for tourism purposes, and
(e) metered cabs or auto rickshaws (including e-rickshaws).
is exempt from GST.
In order to avoid confusion, the Government has defined certain terms used for exemption from GST.
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