GST Liability under RCM for Transportation Services Provided to University

[Rameshwar Mundhe]

We are a private university established through the State University Act by a sponsoring body. As per the Act, the university may be classified as a 'body corporate.'

At our university campus, we have arranged transportation services from a third-party supplier for the pickup and drop-off of staff and students between the campus and the city on a monthly fixed charge of Rs. 1 lakh (fuel charges borne by the university). We recently received an invoice from the supplier for passenger transportation services provided for the month of September 2024.

We seek clarification on whether the GST is applicable under the Reverse Charge Mechanism (RCM) on this service as per Notification No. 13/2017-Central Tax (Rate), which covers GST applicability on passenger transportation services.

Kindly provide your expert opinion on whether we, as a university can be considered as a 'body corporate' for GST purposes, and are liable to pay GST on a reverse charge basis for these transportation services. Also Supplier already has turnover more than 20 lakhs and not taken GST No

[Shilpi Jain]

Since cost of fuel is not included in the price charged by the supplier - no RCM liability in the hands of the university.

[KASTURI SETHI]

Private university is a business entity. Public and private limited companies incorporated under the Companies Act, 2013 or any previous company law are body corporates. Regarding applicability and non-applicability of RCM, peruse the following circular, especially, para no.5 :-

Motor vehicle — Reverse Charge Mechanism (RCM) on renting of motor vehicle

Circular No. 130/49/2019-GST, dated 31-12-2019

[Tarun Agarwalla]

RCM is not applicable as

1. cost of fuel not included

2. the university here may not be a body corporate 

AI Summary

Reverse charge on passenger transport: not triggered where supplier's charge excludes fuel, recipient status secondary. RCM applicability for passenger transportation supplied to a university turns on recipient classification as a body corporate and whether the supplier's contracted charge includes fuel; recorded responses state that where fuel cost is excluded from the supplier's invoice, RCM is not triggered, with recipient status as body corporate remaining a secondary, unresolved factor.