TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 381
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....owing: * that the service is being provided exclusively to the staff and students of the school from the designated pickup points; * that the service includes daily pick up from specified location and times as agreed by the Trust; * that the name of the school is displayed on the buses; * that for the said transportation service, they receive the payment directly from the parents; * that the applicant was identified by the Trust for the transportation service and that the school communicated the same to the parents. 4. As far as the supply of catering service is concerned, the applicant has stated the following: * that they provide catering service to the students during morning/evening and whenever any events are held in the school; * that the service is being provided exclusively to the staff and students of the school; * that they incur all expense relating to running and maintenance of kitchen utensil including timely repairs, maintenance and service of utensil in the canteen; * the applicant ensures all compliance with safety, security policy of the school with respect to canteen; * they receive payment directly from the parents in respect of the catering ....
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....n institute is submitted; * that the permit is only for the school bus; * that the applicant is not obligated to obtain the school bus permit exclusively in the name of the school; that the permit can be obtained under the name of the service provider or any other eligible entity; * that in terms of the school bus transportation agreement it is clear that the Fountainhead School has authorized the applicant to operate the bus under school bus permit for 5 years on behalf of the school including safety, bus parking, service area, etc. which clarifies that the applicant is providing the service to the educational institute; * that they would like to rely on the term 'consideration' as defined u/s 2(31) of the CGST Act, 2017 & the judgement in the case of Sangam Travels, ibid wherein it is held that the bus fees can be directly collected from the parents of the school & they would be eligible for the exemption as per serial no. 66(b)(i) of notification No. 12/2017-CT(Rate). [b] with regard to catering service * that they are providing catering services exclusively to the Fountainhead school; * that the food licenses obtained by the applicant for the catering service pert....
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....o considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 11. Before adverting to the submissions made by the applicant, we would like to reproduce the relevant provisions for ease of reference: CENTRAL GOODS & SERVICES TAX ACT, 2017 * Section 2. Definitions (31) "consideration" in relation to the supply of goods or services or both includes- (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless th....
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.... transporting students to Fountainhead school within the city of Surat; that the agreement is for 5 years, commencing from 1.4.2023 to 31.3.2028. However, Annexure-I which details the routes, schedules, safety protocols, and other additional terms, is not attached. Likewise, the applicant has also attached the services agreement between the Fountainhead Education Trust and the applicant entered into on 1.4.2023. There are two service agreements, [i] for transportation services and [ii] catering services to students. This agreement has been entered into by the Trust with the applicant, wherein para 3, [which is similarly worded for both the service agreements], states as under: 3. Consideration 3.1 In consideration for the services provided by the service provider, the trust shall pay the service provider such fee as is specified in the Schedule I to this Agreement ("Service Charges"). The Service charges shall be inclusive of all applicable taxes, if any, cess or surcharge & other applicable levies payable thereon, in accordance with the terms and conditions set forth in this Agreement. The Service Charge specified includes all amounts payable by the Trust and the Service Provi....
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....ents. The service agreement, paragraph 3 'consideration', states that the Trust is obliged to pay the applicant service provider] such fee as is specified in Schedule-I. Schedule I is already reproduced supra. While the service agreement is silent on the consideration payable by the school as far as the students are concerned, Schedule I states that the applicant will invoice the Trust on a monthly basis for provision of transportation & catering service for the staff. The applicant themselves have mentioned that they are collecting the charges relating to the transportation and catering directly from the students. This was further admitted by the authorized representative during the course of personal hearing. This being the fact, the consideration towards the transportation and catering activity are received by the applicant from the students concerned and since no consideration is received by the school administration, it becomes clear that no services are rendered by the school to its students in relation to transportation and catering of students. Further as applicant is not receiving any payment from the school administration, no services are rendered to the school by the app....