GST Rate on operating mini AC bus services clarified

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The GST Rate on Operating mini AC bus services is clarified now. Earlier, there was confusion among many people regarding GST Rates. The clarification was done by AAR(Authority for Advance Rulings). The applicant, M.P. Enterprises & Associates Limited, is a ‘supplier’ GSTIN under the Central Goods and Services Tax Act, 2017.

Brihanmumbai Electric Supply and Transport Undertaking (BEST) floated a Tender dated 24.08.2019 for stage carriage services for the public transport of 500 mini A.C. buses in Mumbai and its suburbs. Therefore, the Maharashtra Authority of Advance Ruling (AAR) provided clarification regarding this matter. In this article, we will read about the GST Rate on operating mini A.C. bus services clarified.

What is GST?

As the name suggests, The Goods and Services Tax (GST) is a tax imposed on the supply of goods and services.

The primary goal of this tax structure is to manage the cascading effects of other indirect taxes. The other indirect taxes include service tax, excise duty, VAT, etc.

AAR issuing GST Rate on Operating mini AC Buses services

The Authority for Advance Rulings has developed as a significant adjudicating authority on tax problems.

As a result, The primary duty of AAR is to offer an opportunity to determine the non-resident’s and residents’ income-tax liabilities. Furthermore, If a corporation or organization has any doubt regarding its business’ tax responsibilities, it can go to the AAR.

GST Rate on operating mini AC buses services clarified

The AAR has clarified the GST Rate on operating mini AC bus services in two points. These points are as follows.

  • Renting any motor vehicle for the purpose of carrying passengers where the cost of fuel is included in the consideration charged from the service recipient will attract a GST rate of 12%.
  • Similarly, the Rental service of transport vehicles with or without operators will attract a GST rate of 18%.

Therefore, it becomes essential for AC bus services or transportation services to have GST registration.

Know about GST Registration

GST Registration simply means registering your business under current GST Rules. Furthermore, GST registration enables you to recognize your company as a legitimate registrant but offers up a variety of benefits for your company.

GST on Export of Goods & Services

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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