5% GST on Services supplied in terms of Passenger Transportation: AAR [Read Order]

The Gujarat Authority of Advance Ruling (AAR) ruled that 5% GST on services supplied in terms of passenger transportation.

The applicant, M/s. Gensol Ventures pvt.ltd intends to own, develop an electronic/digital platform for booking of cabs.The applicant vide submission dated 13-8-2021 submitted that the drivers will list their electric motor vehicles on the proposed electronic platform/App for booking by the customers for the passenger transportation services; that E-Commerce Operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce and considering this, the applicant can be termed as a E-Commerce Operator; that the Electric Motor Vehicle operated by the Drivers will be in connection with Central Office and can be tracked through Global Positioning System(GPS) or General Packet Radio Service(GPRS) and qualify as radio taxi.

The applicant has sought the advance ruling on the issue Whether the applicant is liable to be registered and classified under the Category of E-Commerce Operator; Whether the applicant is liable to pay or discharge Goods & Service Tax(GST) in accordance to Section 9(5) of the CGST Act, 2017.

The coram of Sanjay Saxena and Arun Richard ruled that M/s Gensol is an e-commerce operator and shall be liable to be registered. M/s Gensol is liable to pay GST as per Section 9(5)CGST Act. The value of supply for passenger transportation service shall be the net amount arrived after the deduction of discount (to be provided by M/s Gensol to the customer) from the gross value. The SAC for subject supply is 996412. The GST shall be leviable @ 5% (2.5% CGST + 2.5% SGST) subject to the fulfilment of the condition at Entry No.8 (ii) of cited Notification11/2017-CT(R) dated 28-6-2017.

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