For any country to develop with the right momentum, modern and efficient transport as a basic infrastructure is a must. New Tax regime, Goods and service tax (GST) has impacted the transportation of passengers to a great extent. GST rate on travel by road, rail, sea, air, rope cable place of supply is the major issue which we will discuss.
Means of transport/ travel by passenger transportation, with or without belonging and there taxability in GST is detailed below:
-
GST on travel By Road
| Mode of transport by Road | GST Rate |
Contract Carriage:
|
5% |
| Non Air Conditioned other than tourism, conducting tour, charter or hire | Exempted |
|
Stage Carriage: Air Conditioned stage carriage |
5% |
| Non Air conditioned stage carriage | Exempted |
| Cabs, Taxi, rickshaws:
Metered cabs, or Auto rickshaws |
Exempted |
| Others including radio taxi and motor cabs | 5% |
Transportation of Goods under GST Regime
-
GST on travel by Rail
| Mode of transport by Rail | GST Rate |
| Railway
Air Conditioned or first class coaches |
5% |
| Other | Exempted |
| Metro, Monorail, Tramway | Exempted |
-
By Sea
| Mode of transport by Sea | GST Rate |
| Inland waterways | Exempted |
| Vessel used for public transport | Exempted |
| Vessel used for Tourism | 5% |
GST Input Tax Credit Refund- Cases, Process, Documents
-
GST on travel by Air
| Mode of transport by Air | GST Rate |
| In Economy class | 5% |
| Other than economy class | 12% with ITC |
| Embarking from or terminating in a regional connectivity scheme airport | 5% |
| Embarking from or terminating in an airport located in specified states | Exempted |
-
GST on travel by Ropeway, Cable
| Mode of transport by ropeway and cable | GST Rate |
| Ropeway and cable | 5% |
From above we get the tax liabilty and rate applicable in case of the GST on travel by passenger from different mode. However to decide whether the supply of service is interstate or intra state we have to determine what is the place of supply when the supplier provides the service of transportation to the passengers.
GST on Financial Services – Goods and Service Tax Regime
Place of Supply:
Where the location of supplier of service and location of recipient of service in India:
| Description | Place Of Supply |
| Passenger transportation services provided to registered person | Location of such person
|
| Passenger transportation services provided to person other than registered person | Place where the passenger embarks on the conveyance for a continues journey |
Where the location of supplier or location of recipient of services is outside India:
| Description | Place of Supply |
| Passenger transportation services provided | The place where passenger embarks on the conveyance for a continues journey |
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The author of above article is CA Tarun Mulani. You can also submit your article by sending a mail to [email protected] or whatsapp us at 7024984925.
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