Transport service to engineering colleges

[Asked by 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.]

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

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.