GST rate is 5% on passenger transport in Air conditioned buses as stage carriages provided that ITC is not allowed on any input goods or services.
Classification of service— In the instant case, applicant is in the business of transportation of goods as a GTA. They have stated that they are desirous of starting business of transportation of passengers in Telangana State by deploying Air Conditioned buses as Stage carriages. They have stated in the application that there is ambiguity regarding applicability of rate of tax for their proposed business with respect to Sl.No.8(ii) and 8(vi) of Notification 11 of 2017.
Question raised for advance ruling is as follows—
1 (A) Whether the rate of GST of 5% (2.5% each towards CGST & SGST) as per Sl.No.8(ii)(b) of Notification No.11/2017-Central Tax (Rates), dt: 28-06-2017 with the condition that input tax credit is not allowed on goods and services.
1 (B) Whether input tax credit on inward supply of services received from the suppliers who are in the same line of business as this condition is not mentioned against the said serial no.
2 (A) Whether the rate of GST 5% (2.5% each towards CGST & SGST) as per Sl.No.8(vi) of Notification No.11/2017-Central Tax (Rates), dt: 28-06-2017 with the condition that input ax credit is not allowed on goods and services used in our outward supply of services other than that of similar inward supply of services received from another service provide.
2 (B) Whether option of 12% (6% each towards CGST & SGST) with no conditions attributed to it is applicable.
As the applicant has stated that they will be in the business of passenger transport in Air conditioned buses as stage carriages, the applicable entry in view of the above discussions is Sl.No.8(ii)(b) of Notification No.11 of 2017, dt: 28-06-2017.
Further they are liable to pay tax at the rate of 2.5% under CGST & SGST respectively if they are not claiming any ITC on goods and services used in supplying service in the said entry.
Held that— ITC is not allowed to be claimed if concessional rate of 5% GST is opted to be paid on service supplied under Sl.No.8(ii)(b) of Notification No.11/2017.
Input tax credit is not allowed on any goods or services received by the applicant if tax is paid at the rate of 5% GST.
Therefore if they are recipient of services from other suppliers who are in the same line of business and would like to claim a lower rate of tax under Sl.No.8(ii)(b), they cannot claim the credit of input tax charged on services from these other suppliers of similar service.
GST rate is 5% on passenger transport in Air conditioned buses as stage carriages provided that ITC is not allowed on any input goods or services.
Classification of service— In the instant case, applicant is in the business of transportation of goods as a GTA. They have stated that they are desirous of starting business of transportation of passengers in Telangana State by deploying Air Conditioned buses as Stage carriages. They have stated in the application that there is ambiguity regarding applicability of rate of tax for their proposed business with respect to Sl.No.8(ii) and 8(vi) of Notification 11 of 2017.
Question raised for advance ruling is as follows—
1 (A) Whether the rate of GST of 5% (2.5% each towards CGST & SGST) as per Sl.No.8(ii)(b) of Notification No.11/2017-Central Tax (Rates), dt: 28-06-2017 with the condition that input tax credit is not allowed on goods and services.
1 (B) Whether input tax credit on inward supply of services received from the suppliers who are in the same line of business as this condition is not mentioned against the said serial no.
2 (A) Whether the rate of GST 5% (2.5% each towards CGST & SGST) as per Sl.No.8(vi) of Notification No.11/2017-Central Tax (Rates), dt: 28-06-2017 with the condition that input ax credit is not allowed on goods and services used in our outward supply of services other than that of similar inward supply of services received from another service provide.
2 (B) Whether option of 12% (6% each towards CGST & SGST) with no conditions attributed to it is applicable.
As the applicant has stated that they will be in the business of passenger transport in Air conditioned buses as stage carriages, the applicable entry in view of the above discussions is Sl.No.8(ii)(b) of Notification No.11 of 2017, dt: 28-06-2017.
Further they are liable to pay tax at the rate of 2.5% under CGST & SGST respectively if they are not claiming any ITC on goods and services used in supplying service in the said entry.
Held that— ITC is not allowed to be claimed if concessional rate of 5% GST is opted to be paid on service supplied under Sl.No.8(ii)(b) of Notification No.11/2017.
Input tax credit is not allowed on any goods or services received by the applicant if tax is paid at the rate of 5% GST.
Therefore if they are recipient of services from other suppliers who are in the same line of business and would like to claim a lower rate of tax under Sl.No.8(ii)(b), they cannot claim the credit of input tax charged on services from these other suppliers of similar service.