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2022 (7) TMI 1100 - AAR - GSTLevy of GST - providing buses on hire (service) - supply of services to BCLL, AICTSL, JCTSL (State Government Co.) - Rate of tax - Admissibility of Input tax credit - HELD THAT:- The supply relates to transportation of passengers on behalf of the client, where the buses are operated and maintained by the applicant and management of the route, slops and collection of fee is done by the client. Therefore, the service of transportation of passengers is being provide by the client. The supply being made by the applicant is that of mode of transportation and therefore, in the nature of renting / hiring of the mode of transport. While the Uttarakhand High Court in COMMISSIONER, CUSTOMS & CENTRAL EXCISE VERSUS SACHIN MALHOTRA, RAJ KUMAR TANEJA, M/S. SHIVA TRAVELS [2014 (10) TMI 816 - UTTARAKHAND HIGH COURT] had held that Renting and Hiring are different activities and are to be treated differently for taxation under the Finance Act. 1994. the Allahabad High Court in ANIL KUMAR AGNIHOTRI VERSUS COMMISSIONER, CENTAL EXCISE KANPUR [2018 (1) TMI 171 - ALLAHABAD HIGH COURT] has departed with the Uttarakhand High Court's. Also, the Honorable Gujarat High Court in the matter of Vijay Travels has held that renting and hiring are not different so far as tax treatment for service lax is concerned. The matter is currently before the Honorable Supreme Court. The different tax liability cannot be fastened on identical service by terming them as "rent" and "hire". Further, it may be noted that under the consideration under the agreement in the form of "hire". On a joint reading of the terms of the agreement, high court rulings. Entry No. 10 of Notification No. 11/2017 - Central Tax (Rate) and Entry No. 22 of Notification No. 12/2017 - Central Tax (Rale) it appears that supply covered under the agreement entered into by the applicant with AICTSL is covered under Entry No. 22 of Notification No. 12/2017 - Central lax (Rate) and is an exempt services - also para 8 of Board Circular No. 164/20/2021 GST dated 06.10.2021, perused, wherein it has been clarified on the recommendation of the GST Council that "giving on hire" in Entry No. 22 of Notification No. 12/2017 - Central Tax (Rate) includes renting of vehicles. Once the supply is exempt, the question relating to rate of tax and admissibility of input Tax credit is redundant.
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