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TMI Blog2021 (11) TMI 1130X X X X Extracts X X X X X X X X Extracts X X X X ..... have taken such Buses on rent from another service provider. Such service provider issued them bill of rent for such buses along with GST @IS% (i.e. CGST 9% and SGST 9%) and GST is separately mentioned in his rent bill. As per Sr.No.8(vi) of Notification No. 11/2017-CT (Rate) Dated 28.06.2017 in case of "Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient", GST Rate is 5% (i.e. CGST 2.5% and SGST 2.5%). Also a condition mentioned is that "Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business. (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken". The applicant seeks advance ruling regarding the availability of input tax credit of GST@ 18% (i.e. CGST 9% and SGST 9%) on the Rent bill issued by the service provider who has given him Buses on rent? 3. Contentions of the applicant: -The applicant is of the opinion that Sr. .No. 8 (vi) of Notification No. 11/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this Act, shall be in respect of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both: (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Further 103 of CGST Act, 2017 stipulates about the ruling pronounced as under: - The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only- a. On the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; b. On the concerned officer or the jurisdictional officer in respect of the applicant. Thus in view of the above section 103 of CGST Act, 2017, the ruling so sought by the Applicant would be binding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the HSN details provided in the registration profile it is seen that the applicant M/s Abhay Singh Gill, Raipur, Chhattisgarh" GSTIN-22BAJPG2742P1ZL has classified their services under HSN Code-996411 [service provision of local land transport services of passengers by railways , metro, mono rail, bus, tramp way, services autos, three wheelers, scooters and other motor vehicles] and under HSN Code-996422 [long distance transport services of passengers through road by bus, car, non scheduled long services distance bus and coach services, stage carriage etc.] Nature of Service of the Service Provider:-The service provider M/s. Gappu Mahendra Travels Pvt. Ltd. Raipur Chhattisgarh GSTIN: 22AACCG9478P1ZX is engaged in the business of travel agents (other than air /rail travel agents) (HSN code -00440294), Passenger transport services (HSN code -9964) and rental services of road vehicles including buses, coaches, cars, trucks and other motor vehicles, with or without operators (HSN code -996601). As informed by the applicant, the above said service provider is to provide buses on rent to the applicant issuing the relevant rent bills comprising of bus rent and operators salary ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS). 2.5 Provided that credit of input tax charged on goods or services used in supplying the service has not been taken [Please refer to Explanation no. (iv)) (iii) Transport of passengers, with or without accompanied belongings, by air in economy class. 2.5 Provided that credit of input tax charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (iv) Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport, as notified by the Ministry of Civil Aviation. 2.5 Provided that credit of input tax charged on goods used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (v) Transport of passengers by air, with or without accompanied belongings, in other than economy class. 6 - (vi) Transport of passengers by motor cab where the cost of fuel is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouncil, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 11/2017-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.690 (E), dated the 28th June, 2017, namely :- In the said notification, (a).................................. (b)................................ (c) against serial number 8, for item (vi), in columns (3), (4) and (5) and the entries relating thereto, the following shall be substituted, namely : - (3) (4) (5) "(vi) Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note issued by a supplier registered under this Act, or such other taxpaying documents as may be prescribed; [(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;] (b) he has received the goods or services or both. [Explanation. -For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before Sr during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person.] (c) subject to the provisions of [section 41 or section 43A], the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra, there are exceptions / exclusions prescribed under Section 17 (5) of the CGST Act, 2017 which provides as under: - (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely: - ((a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely: - (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles; (aa) vessels and aircraft except when they are used - (i) for making the following taxable supplies, namely: - (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft; (ii) for transportation of goods; (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Notification no. 11/2017-CT(Rate) dated 28.6.2017. For the impugned "Passenger transport services "of Heading 9964, viz. "Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient", in as much as eligibility to the tax rate as stipulated under sr. no 8(vi) of Notification no. 11/2017-CT(Rate) dated 28.6.2017 as amended is concerned, the same is fully dependent on the condition of availment or otherwise of the Input tax credit by the applicant, as discussed in the preceding para. 6. Thus in view of the above discussions we come to the considered conclusion that the applicant would be eligible to input tax credit on the input services provided they fulfill the conditions as stipulated under section 16 read with section 17 of the CGST Act, 2017, whereas eligibility or otherwise of the tax rate as provided under sr. no. 8(vi) of Notification no. 11/2017-CT(Rate) dated 28.6.2007, as amended vide Notification No. 31/2017-C.T. (Rate), dated 18-10-2017 read with Explanation no. (iv) therein is subject to the pre-condition that Input tax credit of input tax charged on goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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