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 %

[KASTURI SETHI]

GST Rate is 18%. See serial No.10 (iii) of Notification No.11/17-CT(R) dated 28.6.17 as amended up to 30.9.19 (Notification No.20/19-CT(R) dated 30.9.19). HSN 9966. Also reply in respect of Issue ID No.115542 dated 18.10.19

[Joseph Sungte]

Sir, thanks very much for your replies.

May I further ask to clarify my bit doubts.

As per your replies to Issue Id no. 115542, gst rate mentioned is 5% with RCM. However your replies above states 18%. Is this because of university not availing RCM or otherwise?

[KASTURI SETHI]

RCM is applicable only if Service Receiver is Corporate Body and service Provider is Non-Corporate Body. Example of Non-corporate body is Individual, Proprietorship, Partnership, One Person Firm, etc. A university is not a corporate body. A university is an autonomous body. If you want more information email me a copy of contract/agreement executed between the university and travel agency. My email Id is [email protected]

No consultation fee for scrutiny of agreement will be charged as your query is under the auspices (patronage) of TMI.

[Joseph Sungte]

Thanks very much again, sir

AI Summary

GST classification for bus hire depends on receiver/provider status; autonomous university not a corporate body, so RCM inapplicable. Applicable GST for monthly bus hiring for university student transport is 18%, with the supplier liable to charge GST under the relevant HSN classification. The Reverse Charge Mechanism applies only where the receiver is a corporate body and the provider a non corporate; an autonomous university is not a corporate body, so RCM does not apply to the described arrangement.