The Authority for Advance Ruling(AAR) of Andhra Pradesh ruled that 18% Goods and Services Tax (GST) applicable on renting the Non-Air conditioned buses under the name & style of Andhra Pradesh State Road Transport Corporation ( APSRTC).
The Andhra Pradesh State Road Transport Corporation is a public sector undertaking established under the RTC Act, 1950 under the Act of Parliament and the capital/fund invested in the APSRTC is wholly by Central/State Government. It is engaged in the transportation of passengers both as stage carriers and contract carriers and also in transportation of goods.
The applicant had filed an application in form GST ARA-01, dated 15.11.2019, paying the prescribed amount of fee for seeking Advance Ruling.
The order was pronounced by D. Ramesh, Additional Commissioner of State Tax and M. Sreekanth, Joint Commissioner of Central Tax on an application filed by M/s. Andhra Pradesh State Road Transport Corporation.
The AAR examined the information furnished by the applicant and observed that the renting the Non-Air conditioned buses under the name & style M/s Andhra Pradesh State Road Transport Services for the occasions of marriages, functions, etc, for transporting of employees and students of other organizations/ departments, for transporting of passengers to Sabarimala, for transporting of the public to meetings conducted by political parties and to places like Polavaram project, etc. is rental services.
The AAR further said that the tax liability under GST law is 18% (9% CGST+9% SGST) and the applicant is the provider of rental service has to pay the said tax.
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