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

Transport services to educational institutions are taxable; college provided student transport attracts GST at the applicable rate under notifications. Transport services carrying students to engineering colleges are taxable under GST; the exemption for motor-vehicle transport applies only to services to or by institutions providing pre-school and education up to higher secondary. Providers of student-transport services for engineering colleges must therefore charge GST on amounts received, and such passenger-transport services fall under the notified HSN classifications with an applicable GST rate of 18%. The same tax position applies when the college supplies the transport service.