Transport service to engineering colleges

[Guest]

A person is giving transport services to engineering colleges (transporting students from several places to one destination i.e. engineering college) and the person is receiving 20lakh above in a financial year from the engineering college.

Is the person liable to pay GST? On the amount received

[KASTURI SETHI]

Yes. GST is payable. Exemption is available up to Higher Secondary School/institution. (Notification No.12/17-CT(Rate) dated 28.6.17 as amended up to 31.12.18 status as on 15.1.19.

22	Heading 9966 or Heading 9973	Services by way of giving on hire - (a).... to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or	Nil	Nil
		(b).... to a goods transport agency, a means of transportation of goods. [(c)... motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent.]

[Guest]

Thank you for your reply sir, if yes to transport service to engineering colleges, then what is the tax rate on it sir?

[Guest]

If transport service by the engineering college to the students attracts GST?

[KASTURI SETHI]

GST Rate is 18 %. No exemption is available even college provides this service. Exemption is op to Higher Secondary whether provided by an educational institution or to an educational institution. See Notification No.12/17-CT(Rate) dated 28.6.17 as amended vide Notification No.28/18-CT(Rate) dated 31.12.18 (effective from 1.1.19. (Serial No.66). Also Notification No.11/17-CT(Rate) dated 28.6.17 as amended vide Notification No.27/18-CT(Rate) dated 31.12.18 effective from 1.1.19 (Serial No.8). HSN 9992, 9963 or 9964 (whichever applicable to you.) Rate is 18% in all HSNs for your activity/service.

AI Summary

GST Applicable on Transport Services to Engineering Colleges; 18% Rate with No Exemptions for Higher Education. A query was raised regarding the applicability of Goods and Services Tax (GST) on transport services provided to engineering colleges, where the service provider earns over 20 lakh annually. It was clarified that GST is indeed payable, as exemptions apply only to services up to higher secondary education. The applicable GST rate for such transport services is 18%, with no exemptions available for services provided by or to engineering colleges. Relevant notifications were cited to support this position, confirming the tax obligations for these services.