Taxable Supply of COVID-19 Patient Transport Vehicles

The authority ruled that the supply of Toyota Innova or equivalent vehicles registered for carrying COVID-19 patients for medical treatment is taxable under Notification No. 11/2017-C.T. (Rate) and not exempt under Notification No. 12/2017-C.T. (Rate) as claimed by the applicant.

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Issues Involved:
1. Taxability of services involving the supply of Toyota Innova or equivalent vehicles registered in the tourist category with an All India Tourist Permit for carrying COVID-19 patients for medical treatment.
2. Applicability of exemption under GST law for the said services.

Issue-wise Detailed Analysis:

1. Taxability of Services:
The applicant, M/s. Geetee Tours Private Limited, provides Toyota Innova or equivalent vehicles (6-seater) registered in the tourist category with an All India Tourist Permit to the Municipal Corporation of Greater Mumbai (MCGM) for carrying COVID-19 patients for medical treatment. The applicant contends that these services are taxable under GST as per Notification No. 11/2017-C.T (Rate) dated 28.06.2017, amended by Notification No. 20/2017-C.T. (Rate) dated 22.08.2017, and charges GST on the commercial invoices accordingly.

2. Applicability of Exemption:
The MCGM opines that these services are exempt under Sr. No. 3 of Notification No. 12/2017, which exempts "pure services" provided to the government or local authority in relation to functions entrusted under Article 243G or 243W of the Constitution, such as public health. The applicant argues that the services fall under "public health, sanitation conservancy, and solid waste management" as per entry no. 6 of the Twelfth Schedule, Article 243W of the Constitution, and should be exempt.

Observations and Findings:

1. Document Analysis:
The applicant produced a Letter of Intent (LOI) from MCGM addressed to the Federation of Taxi Operators (FTTO), not directly to the applicant. The LOI indicates that payments are made to FTTO members after submitting bills and utilization certificates. This suggests that FTTO, not the applicant, supplied services to MCGM. The applicant also submitted a "SERVICE PURCHASE ORDER" mentioning "Adv for ambulance like Innova covid 19," but no evidence was provided to show that the vehicles were converted into ambulances or registered as such.

2. Mixed Supply of Services:
The jurisdictional officer argued that the services included additional charges such as toll, parking, driver allowance, and night allowance, constituting a mixed supply. However, the authority concluded that these additional charges were part of the main supply of renting vehicles and did not constitute a mixed supply.

3. Exemption Criteria:
The authority examined whether the services qualify as "pure services" under Entry No. 3 of Notification No. 12/2017-CTR. Although the services were provided to MCGM, a local authority, no evidence was submitted to prove that the vehicles were used solely for transporting COVID-19 patients or registered as ambulances. The authority referred to Circular No. 51/25/2018-GST, which exempts ambulance services provided to the government as a function of public health. However, the applicant failed to demonstrate that the services met these criteria.

Conclusion:
The authority concluded that the services do not satisfy the exemption provisions under Entry No. 3 of Notification No. 12/2017-C.T. (Rate) dated 28th June 2017, as amended. Therefore, the services are taxable under Notification No. 11/2017-C.T. (Rate) dated 28th June 2017, as amended.

Order:
The authority ruled that the supply of Toyota Innova or equivalent vehicles registered in the tourist category with an All India Tourist Permit for carrying COVID-19 patients for medical treatment is considered taxable services and not exempted services.

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