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The service provided is ‘rent a cab’ Service, which attracts IGST @ 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 has not been taken.

Shanti Prime Publication Pvt. Ltd. Rate of Tax — In the instant case, the applicant has raised invoices on Indian Army by charging GST on all types of vehicles (air conditioned and non-air conditioned) supplied by them. However, the Indian Army has not reimbursed them GST on non-air conditioned vehicles provided by them on the grounds that no GST is payable on non-air conditioned contract carriages as per serial no. 15 of exemption notification no. 12/2017-Central Tax (Rate) dated 28.06.2017.

OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

The applicable GST rate on supply of non-air conditioned vehicles on hire to Indian Army.

Held that—
The Service provided by the applicant is not exempted under Notification No. 12/2017 dated 28.06.2017 as this Service does not fall under ‘non-airconditioned contract carriage’ category. The service provided is ‘rent a cab’ Service, which attracts IGST @ 5% (CGST @ 2.5% and SGST @ 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) has not been taken or IGST @ 12% (CGST @ 6% and SGST @ 6%) if input tax credit is availed.Pawanputra Travels, In Re…. [2018] 6 TAXLOK.COM 042 (AAR-Rajasthan)