TaxTMI 
TaxTMI 
Can experts clarify whether sale of “route permit” for buses attracts GST. If yes, whether it is “Goods”or “Services”. Sale is permitted only with prior approval of transport authority.
GST Applicability
08 Mar 2023 
8 Replies 
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GST on transfer of route permit: treated as part of bus hire or sale, taxable on entire consideration.
Taxability of consideration for transfer of a stage carriage permit depends on context: where the transfer is integral to hiring the bus or sale of the bus, it is not a separate supply and GST applies to the entire consideration as bus hire or sale. A standalone transfer of the permit requires analysis under motor-vehicle regulatory provisions to determine permissibility and GST treatment; reference was made to an exemption relating to grant of permits and a CBEC instruction for further guidance. (AI Summary)
Taxability of consideration for transfer of a stage carriage permit depends on context: where the transfer is integral to hiring the bus or sale of the bus, it is not a separate supply and GST applies to the entire consideration as bus hire or sale. A standalone transfer of the permit requires analysis under motor-vehicle regulatory provisions to determine permissibility and GST treatment; reference was made to an exemption relating to grant of permits and a CBEC instruction for further guidance. (AI Summary)