ITC not allowed if concessional rate of 5% opted for business of transportation of passengers as stage carriage: AAR
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- Last Updated on 13 February, 2022
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Case Details: Authority for Advance Rulings Telangana Sri Krishna Logistics, In re - [2022] 134 taxmann.com 319 (AAR- TELANGANA)
Judiciary and Counsel Details
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- B. Raghu Kiran and S.V. Kasi Visweswara Rao, Member
Facts of the Case
The applicant was desirous of starting business of transportation of passengers in Telangana State by deploying air conditioned buses as stage carriage. It filed an application for advance ruling to determine taxability and admissibility of ITC under GST.
AAR Held
The Authority for Advance Ruling observed that service mentioned at Sl. No. 8(ii)(b) of Notification No. 11/2017-Central Tax (Rate), dated 28-06-2017 is “Air Conditioned Stage Carriage” whereas the service mentioned at Sl.No.8(vi) is transport of passengers in any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charges from the service recipient. In the instant case, the applicant would be in the business of passenger transport in Air conditioned buses as stage carriages, the applicable entry shall be Sl. No. 8(ii)(b) being specific entry and it would be liable to pay tax at the rate of 5% without claiming any ITC on goods and services used in supplying service.
List of Cases Referred to
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- Pankajakshi v. Chandrika [2016] 6 SCC 157 (para 7)
- J.K. Cotton Spg. & Wvg. Mills v. State of UP AIR 1961 SC 1170 (para 7)
- Belsund Sugar Co. Ltd. v. State of Bihar [1999] 9 SCC 620 (para 7).
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