TMI Blog2021 (7) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... R (Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub- section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017) 1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the APGST Act. 2. The present application has been filed u/s 97 of the Central Goods Services Tax Act, 2017 and AP Goods Services Tax Act, 2017 (hereinafter referred to CGST Act and APGST Act respectively) by M/s. Andhra Pradesh State Road Transport Corporation (hereinafter referred to as applicant), registered under the AP Goods Services Tax Act, 2017. 3. Brief Facts of the case: 3.1. The applicant, Andhra Pradesh State Road Transport Corporation (APSRTC) was established on 11th January,1958 as per The Road Transport Act, 1950 by G.O Ms No.36, Home (Transport - IV) dated 06-01-1958. As a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue. 5. Applicant's Interpretation of Law: 5.1 The applicant submits that in the process of merger, all the buses run by APSRTC are proposed to be given on hire basis to PTD department of State Government of Andhra Pradesh. Thus, all the buses owned by and belonging to APSRTC are going to be taken up by PTD on lease. Similarly, all the private buses taken on hire by APSRTC will also be hired out to PTD directly by the owner of the buses. There is no material difference in the contract except for the fact that instead of APSRTC, the buses are being taken on lease by the AP State Government Directly. 5.2 The applicant states that under GST (even under the erstwhile service tax), the service of transport is taxed at a concessional rate. The applicable rate of GST at present is 5% with the stipulation that there shall be no Input Tax credit. Hence any tax that the transport undertaking shall pay on the inward supplies is not eligible as input tax credit and it will eventually add up to the cost of service. Therefore, as per the understanding of the applicant, the following entry had been contemplated and provided in the tariff. Thus, the entry of exemption is meant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Submissions: 6.1 As per Entry No 22 of Notification 12/2017 Central Tax (Rate)- SAC 9966 or 9973, service by way of giving on hire to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers is exempt from Tax As per definition 2(zzk) of notification No. 12/2017 state transport undertaking has the same meaning as assigned to it in clause (42) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988). 6.2 Section 2(42) of Motor Vehicles Act, 1988 defines State Transport undertaking. State transport undertaking means any undertaking providing road transport service, where such undertaking is carried on by, (i) the Central Government or a State Government; (ii) any Road Transport Corporation established under section 3 of the Road Transport Corporations Act, 1950 (64 of 1950); (iii) any municipality or any corporation or company owned or controlled by the Central Government or one or more State Governments, or by the Central Government and one or more State Governments; (iv) ZillaParishad or any other similar local authority Explanation :- For the purposes of this clause, road transport service means a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the application. The taxability of the services supplied or to be supplied, as governed under the provisions of respective GST Acts are examined to decide the question involved in the present Ruling. 7.1 The applicant approached this authority for the classification and taxability of the services rendered by the APSRTC i.e., Whether the transaction of hiring/leasing of buses by the APSRTC to the Public Transport Department (PTD) of Government of Andhra Pradesh is eligible for the exemption under Entry 22 of Notification No 12/2017 Central Tax (Rate) or not. 7.2 Now we examine the contention of the applicant whether these hire services be classified under the said exemption entry as reproduced here. SI. No. 22 of Exemption Notification No. 12/2017-Central Tax (Rate) 1. Exemption Entry SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 22 Heading 9966 or Heading 9973 Services by way of giving on hire (a) to a state transport under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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