XYZ(Proprietor) supplying Bus service to PQR Pvt.Ltd. for transporting their employees from factory to nearby destinations. In the month of January’21, XYZ crossed the threshold limit of ₹ 20 Lacs from this business.
1) Whether XYZ is required to register with GST and pay GST under forward charge or
2) PQR was required to pay GST under reverse charge?
Bus Service Revenue Exceeds 20 Lakhs: XYZ Not Liable for GST Registration Under Reverse Charge Mechanism XYZ, a proprietor, provides bus services to PQR Pvt. Ltd. for employee transportation. In January 2021, XYZ's revenue from this service exceeded 20 lakhs, raising questions about GST registration and liability. Abhishek Tripathi and Kasturi Sethi clarify that XYZ's service is categorized as renting a transport vehicle with an operator, not passenger transportation, thus falling under the Reverse Charge Mechanism (RCM) where PQR is liable for GST. Shilpi Jain and Karan Bansal concur, noting that XYZ is not required to register for GST if all supplies are under RCM. The discussion references various notifications and rulings for further clarity. (AI Summary)
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