Transportation of School Students

[Rushab Jain]

We are running a business of transportation of school students. We had an formal agreement with the school that we will provided services of transportation of school students. However we do not receive any consideration from school nor we raise any invoice on school. Entire consideration is received from school students directly. Now my question is whether these services is taxable or exempt?

If it is taxable or exempt please specify under which head i.e service to educational institution or transport of passenger

AI Summary

Exemption for student transportation may hinge on whether students or schools are the service recipients; seek advance ruling.
Whether transportation of school students is subject to GST depends on whether the service is characterised as supplied to the educational institution (and therefore exempt) or to students/parents (and therefore taxable); where payments are received from students or parents, classification is uncertain, alternative concessional treatment for passenger transport may apply subject to input tax credit restrictions, and factual features such as invoicing, contractual party and payment routing are determinative, so an advance ruling is recommended.