TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 178
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....ons. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the APGST Act, 2017. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The applicant has paid fees Rs. 5,000/- under SGST (25063700020535 dated 12.06.2025), and another Rs. 5,000/- under CGST (25063700020535 dated 12.06.2025) towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act 4. Brief Facts of the case: 1. M/s Public Transport Department Government Of Andhra Pradesh (Applicant) is an arm of the State Government of Andhra Pradesh which provides public transport facility under the aegis of the Andhra Pradesh State Road Transport Corporation. 2. The Applicant provides services of passenger transport by road in air-conditioned and non-air-conditioned transport as well as courier and GTA services. The registered address of the applicant is 1st Floor, NTR Administration House....
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.... above transaction is exigible to GST, whether it must be on forward charge or reverse charge? On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction i.e., Governorpet Circle, Vijayawada-II Division. Accordingly, the application has been forwarded to the jurisdictional officer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, remarks are received from the State jurisdictional officer concerned through mail dated 07-08-2025 stating that there are no proceedings issued/pending relating to M/s Public Transport Department Government Of Andhra Pradesh. 6. Applicant's Interpretation of Law: 6.1 Statement containing the Applicant's interpretation of law and/or facts, as the case may be, in respect of the questions(s) on which advance ruling is sought The applicant submitted that they are the absolute owners of the bus stand and issues tenders for third-party maintenance of toilets. It is respectfully submitted on successful selection of a particular bidder, that the selected bidder and the Applicant enter into a contract wherein the license to operate the toilets are given to the bidder. ....
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....ich the licensee has paid through (EMD DD No.113248, Dt.08.11.2023 an amount of Rs. 2,00,000/-, DD No.133074, Dt. 30.11.2023 an amount of Rs. 10,95,796/- and produced bank Guarantee for an amount of Rs. 9,29,997/- towards three months remuneration 1. The Contractor has to undertake the contract work for a minimum period of two years from the date of entering into an agreement. If he desires to discontinue the contract for whatsoever reasons, before completion of minimum period of one year of the contract, the Security Deposit will be forfeited. 2. The Contractor has submitted Bank Guarantee for an amount of Rs. 9,29,997/- (Rupees Nine Lakhs Twenty Nine Thousand Nine Hundred and Ninety Seven only) with validity of 27 months where as the contract period is of 2 years. 3. The Contractor has to pay the remuneration on or before 10th of every month failure to pay the remuneration within the stipulated date will result in levy of penal interest (r)36% per annum from 1st day of the month to which the license fee belongs to. 4. The Corporation has every right to terminate the contract with ONE MONTH advance notice without assigning any reason during the ....
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....ay of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets. Nil Nil This being the case, it is respectfully submitted by the applicant that they are renting the public facilities to third parties who are in-turn paying license-fee/ rent to the Applicant and who in-turn collect fee of Rs. 5/- per passenger using the facilities. 6.5 In this regard, the applicant would like to rely on the decision of the Hon'ble High Court of Andhra Pradesh of Rajeev Yuvajana Sangham Vs. The State of AP decided vide W.P. No. 16162 of 2022, wherein, the Hon'ble High Court had held that licensee fee in lieu of the work contract of maintenance of toilets is exempted. Relevant extract of the decision is reproduced hereunder: 9. A perusal of the Notification, dated 28.06.2017, (Notification No.12/2017-Central Tax (Rate), would show that Heading 9994 relates to "Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets" and the rate of tax against the said heading is shown as "nil". Similarly, the Government of Andhra Pradesh, vide G.O.Ms.No.588, dated 12.12.2017....
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...., represented by Sri Chall Rama Rao. 2. Deed of Agreement dated 23.07.2024 between APSRTC (Deputy Chief Traffic Manager, Visakhapatnam) and M/s Poul Raju Cleaning Sweeping, Sanitation & Maintenance Society, represented by Sri Chall Rama Rao. 3. Deed of Contract dated 30.12.2023 between APSRTC (Deputy Chief Traffic Manager, PNBS Vijayawada) and M/s Chandu Sanitation Workers Welfare Association, represented by its President, Sri U. Siva Nageswara Rao. 8.2 The applicant submitted that it is a public sector body under the Government of Andhra Pradesh; that toilet facilities are provided as part of public amenities at bus stands owned by the Applicant; that the maintenance and operation of these facilities are licensed to private parties through a tender process; that no fee is collected by the Applicant from the users; however, the licensees collect a nominal fee from users and pay a monthly license fee to the Applicant. In these circumstances, the applicant sought for Advance Ruling whether the activity of licensing toilet blocks at bus stands owned by the Applicant (Public Transport Department, Government of Andhra Pradesh), to third-party contractors for mainten....
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....iption of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 76 Heading 9994 Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets Nil Nil From the above it is noticed that the issuance of 'licence' is a supply. But, the said 'license' in the present case is issued for maintenance of toilets at bus stations for use of passengers and staff and as per the entry at Sl.No.76 of Notification No.12/2017-Central Tax (Rate ) dated 28.6.2017 the "services by way of public conveniences such as provision of facilities of bathroom, washroom, lavatories, urinals, or toilets" has been exempted from levy of GST. 8.6 Further, the Hon'ble High Court of Andhra Pradesh in W.P. No. 16162 of 2022 in the case of Rajeev Yuvajana Sangham Vs. The State of AP, held that demanding C.G.S.T. and A.P.G.S.T. at the rate of 9% each on the monthly license fee paid by the petitioner for the work contract of maintenance of toilets at bus station iss illegal and improper. Relevant extract of the decision is reproduced hereunder: 9. A perusal of the Notification, dated 28.06.2017, (Notificatio....