gst rate for monthly hiring of bus

[Joseph Sungte]

Sir/Madam,

University is hiring bus on monthly basis for transportation of its students from X tours and travel agency. Please let me know the applicable gst rate. Whether it is 18% or 5 %

AI Summary

University Seeks Clarification on Applicable GST Rate for Bus Hire; 18% Confirmed, RCM Not Applicable A university is hiring a bus monthly from a travel agency for student transportation and seeks clarification on the applicable Goods and Services Tax (GST) rate. The initial response indicates an 18% GST rate based on specific notifications. However, confusion arises due to a previous mention of a 5% rate with Reverse Charge Mechanism (RCM). It is clarified that RCM applies only when the service receiver is a corporate body, which a university is not. Further assistance is offered for reviewing the contract without a consultation fee.