TaxTMI 
TaxTMI 
2021 (8) TMI 1019
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....on is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGS T Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by M/S Pooja Vaishnavi School Bus Services (Prop.: Shailesh Ramsunder Pande), the applicant is as under:- 2.1 M/s. Pooja Vaishnavi School Bus Services (Prop.: Shailesh Ramsunder Pande) entered in contract with M/s Ratan India Power Limited for supply of NON AC Buses for transportation of their staff under contract carriage. As I am supplying NON AC Buses, whether GST is applicable for the same contract and applicability of "SI No. 15 Heading 9964 of Notification No. 12/2017, dated: 28/06/2017 We are providing transportation of passengers excluding tourism, conducted tour, charter or hire of NON Air Conditioned Buses under a contract carriage with our customer. Whether GST is applicable on this service? B. Statement containing the Applicant's interpretation of law and /or facts 2.3 S. No. 15 (b) of Notification N....
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....ibilities of hirers of motor cabs.- (1) It shall be the duty of every hirer, to keep the holder of the license, informed of his movements from time to time. (2) If an individual or company has hired the vehicles as a leader of the tourist party, it shall be the duty of such leader of the party to keep the holder of the license informed of the movement of each vehicle, from time to time. (3) If a hirer so desires, he may engage a person possessing a valid driving license to drive the vehicle so hired during the period of the hire agreement. 2.5.5 A license holder may hire his vehicle for any person for his own use and the same will be regulated as per The Rent A Cab Scheme, 1989. The scheme gives the sense of hiring of a motor cab to a person for own use. Hire can be explained in the terms of the scheme that hiring of a motor cab by a license holder to any person for own use. In other words, the person can use the motor cab for own use only. Here, hire means to get the vehicle to own use therefore the person getting the vehicle will have effective control over the motor cab. Effectively, it is not simple hiring. In fact it is a right to use over the mot....
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....a fixed or an agreed rate or sum (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes (i) a maxicab; and (ii) a motorcab notwithstanding the separate fares are charged for its passengers;" From the plain reading of SL no 15 heading 9964 of above Notification, exemption of taxes is available only on transportation of passengers by air in sub entry (a) and on Stage carriage as per sub entry (c). (Where as stage carriage is defined as per Section 2(40) of the Motor Vehicles Act, 1988 as : "Stage carriage" means a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey : ) Therefore these two subentries does not apply in this supply. And Subentry (b) is about non-air-conditioned contact carriage other than radio taxi for transportation of passengers but excluded Tourism,....
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....ing of a motor vehicle) has not been taken Or IGST @ 12% (CGST @ 6% and SGST @ 6%) if input tax credit is availed" As in the present case ruling is sought only on applicability of notification No 12/2017 dated 28.06.2017, the same shall not apply to the supply in question. The point which merits examination here is that whether the impugned services are covered by the definition of "rent-a-cab". In this regard, it is observed that the phrase "rent a-cab has not been defined in the CGST/SGST Act, 2017. In situations where statutory meaning of any term/phrase has not been provided words, entries and items in taxing statutes must be construed in terms of their commercial or trade understanding, or according to their popular meaning. Resort to rigid interpretation in terms of scientific and technical meanings should be avoided in such circumstances, as has been held by the Hon'ble High Court of Allahabad in the case of Godrej Consumer Products Limited Vs. Commissioner of Commercial Tax [2018 (13) G.S.T.L. 135 (All.)]. Hence, we first proceed to examine as to what is rent-a-cab. 11. As per information available on website https://en.wikipedia.org/wiki/Cab, Cab means Cab or C....
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....ii) a maxicab, or (iii) any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward: 13. From the above, it emerges that where any commercial vehicle is hired for transportation of passengers, it would be squarely covered by the phrase "rent-a-cab". In other words, any person who provides motor vehicle designed to carry 'passengers', on rent, would be included. This also implies that it includes renting of motor cars, motor cabs, maxi cabs, mini buses, buses and all other motor vehicles which are designed to carry passengers, irrespective of their capacity to carry passengers. The activity of the contractor in the instant case, providing buses on hire to the M/s. Ratan India Power Ltd, is specifically covered under the meaning of "rent-a-cab", 15. In view of above, it clearly stands established that the services of the applicant for hiring of buses for transportation of employees qualify as "rent-a-cab" services. Therefore in view of above rulings and facts the Service provided by the applicant is not exempted under Notification No. 12/2017 dated 28.06.2017 as this Service does not fall under 'non-air-condit....
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....buses) to transport staff under contract carriage on monthly hire basis. (4) The buses shall operate strictly as per instructions of RIPL's Admin-in-Charge. (5) As per clause 5.2, the contract period shall be 10 months and as per clause 5.3, the contract may be extended subject to performance of the contractor i.e. the applicant under mutual consent of both the parties. (6) The supplier, i.e. the applicant shall ensure all the compliance related to GST for the supplies or services rendered including Tax Amount. 5.4 We find that in the instant case, the applicant has an agreement with RIPL for supplying Non-AC buses to transport staff of RIPL and the buses are owned by the applicant. Further, the applicant also incurs expenses on fuel and maintenance of the buses and for all these services provided by the applicant, they are paid fixed hire cost plus fixed fuel cost at predetermined rates of fuel plus mileage. 5.5 We also find that it is RIPL which controls the deployment of the buses. A perusal of the agreement reveals that the applicant shall deploy the buses (already inspected by RIPL) or as per instructions of the Admn. Dept. of RIPL. Thus the ap....
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....der a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum,- (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes, (i) a maxicab; and (ii) a motorcab notwithstanding the separate fares are charged for its passengers; 5.7.2 Thus, the essential ingredient of a contract carriage is that it plies under a contract for a fixed set of passengers, and does not allow any other passenger to board or alight from the carriage at will. A 'contract carriage' canies passengers as a group and cannot pick up passengers en-route. 5.7.3 Since the rent-a-cab has not been defined under GST Act, we need to analyse the same word taking the help of Motor Vehicle Act, 1988. Dictionary meaning of Rent a cab is "Taxi" "motor vehicle" ....
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.... Sr.No. 10 of Notification No. 11/2017-CT (Rate) dated 28.06.2017 amended by Notification No. 31/2017-CT (Rate) dated 13.10.2017 is as under:- Sl.No. Chapter, Section or Heading Description of Service Rate (percent) Condition 10. Heading 9966 (Rental services of transport vehicles ("(i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle) has not been taken. [Please refer to Explanation no. (iv)] Or 6 - 5.8.2 The subject case is clearly covered by Entry Sr. No. 10 of Notification No. 11/2017 - CT (Rate) dated 28.06.2017 in as much as there is a Rental services of transport vehicles with or without operators. All activities of Renting of any motor vehicle/transport vehicle which is designed to carry passengers where the cost of fuel is included ....