We are writing this article as per recent law amended w.e.f. 18/07/2022.
There are three Type of services which are being used inter-changeably in general in the case of Transport Services through Land for persons :-
- Passenger Transport Services (With or Without Cost of Fuel)
- Renting of Vehicles with Operator (With or Without Cost of Fuel)
- Renting of Vehicles without Operator (With or Without Cost of Fuel).
In this article, we will discuss only about Passenger Transport Services (With or Without Cost of Fuel).
Passenger Transport Services via Land, generally provided through following medium (s):-
- Transport through Omnibus
- Transport through Car/motorcab (Designed to have seating upto six person excluding Driver)
- Transport through Maxicab (Designed to have seating more than six persons but less than 12 persons excluding Driver)
- Transport through Motor Cycle
Important Definitions under Motor Vehicles Act 1988 :-
“Omnibus” means any motor vehicle constructed or adapted to carry more than six persons excluding the driver
“maxicab” means any motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver, for hire or reward;
“motorcab” means any motor vehicle constructed or adapted to carry not more than six passengers excluding the driver for hire or reward;
“Contract carriage” means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under 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 motor cab notwithstanding that separate fares are charged for its passengers;
“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.
“educational institution bus” means an omnibus, which is owned by a college, school or other educational institution and used solely for the purpose of transporting students or staff of the educational institution in connection with any of its activities.
“motor cycle” means a two-wheeled motor vehicle, inclusive of any detachable side-car having
an extra wheel, attached to the motor vehicle
GST Specific Definitions
“radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS)
GST Rate on Services for Transport through Omnibus
There are two Major Categories for transportation through Omnibus :-
- Air Conditioned
- Non Air Conditioned
Further each such category is divided into two segments :-
- Contract Carriage
- Stage Carriage
- Radio Taxi
| Nature of Vehicle/Service | GST Rate | Condition for ITC |
| Air-conditioned contract carriage | 5% | Credit of input tax charged on goods and services used in supplying the service has not been taken |
| Air-conditioned stage carriage | 5% | Credit of input tax charged on goods and services used in supplying the service has not been taken |
| Radio Taxi (Air/Non-Air Conditioned) | 5% | Credit of input tax charged on goods and services used in supplying the service has not been taken |
| Non-Air Conditioned
(Contract Carriage as well as Stage Carriage)
Where cost of Fuel is included in consideration charged from Service Recipient |
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 |
| Non-Air Conditioned
(Contract Carriage as well as Stage Carriage)
Where cost of Fuel is included in consideration charged from Service Recipient |
12% | No Condition |
| Non-Air Conditioned
(Contract Carriage as well as Stage Carriage)
Where cost of Fuel is NOT included in consideration charged from Service Recipient |
18% | No Condition |
GST Rate on Transport through Car/Motorcab (Designed to have seating upto six person excluding Driver)
| Nature of Vehicle/Service | GST Rate | Condition for ITC |
| Radio Taxi (Air/Non-Air Conditioned) | 5% | Credit of input tax charged on goods and services used in supplying the service has not been taken |
| Air Conditioned/Non-Air Conditioned
Where cost of Fuel is included in consideration charged from Service Recipient |
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 |
| Air Conditioned/Non-Air Conditioned
Where cost of Fuel is included in consideration charged from Service Recipient |
12% | No Condition |
| Air Conditioned/Non-Air Conditioned
Where cost of Fuel is NOT included in consideration charged from Service Recipient |
18% | No Condition |
GST Rate on Transport through Maxicab (Designed to have seating more than six persons but less than 12 persons excluding Driver)
| Nature of Vehicle/Service | GST Rate | Condition for ITC |
| Air-conditioned Contract Carriage Maxicab
|
5% | Credit of input tax charged on goods and services used in supplying the service has not been taken |
| Radio Taxi (Maxicab)
(Air/Non-Air Conditioned) |
5% | Credit of input tax charged on goods and services used in supplying the service has not been taken |
| Maxicab
Non-Air Conditioned
(Contract Carriage)
Where cost of Fuel is included in consideration charged from Service Recipient |
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 |
| Maxicab
Non-Air Conditioned
(Contract Carriage)
Where cost of Fuel is included in consideration charged from Service Recipient |
12% | No Condition |
| Maxicab
Air-Conditioned/Non-Air Conditioned
(General)
Where cost of Fuel is included in consideration charged from Service Recipient
|
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 |
| Maxicab
Air-Conditioned/Non-Air Conditioned
(General)
Where cost of Fuel is included in consideration charged from Service Recipient
|
12% | No Condition |
| Air Conditioned/Non-Air Conditioned
(Contract Carriage/General)
Where cost of Fuel is NOT included in consideration charged from Service Recipient |
18% | No Condition |
GST on Transport Services through Motor Cycle
| Motor Cycle
Where cost of Fuel is included in consideration charged from Service Recipient
|
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 |
| Motor Cycle
Where cost of Fuel is included in consideration charged from Service Recipient
|
12% | No Condition |
| Motor Cycle
Where cost of Fuel is NOT included in consideration charged from Service Recipient |
18% | No Condition |
GST Exempted Services
- Transport of passengers, with or without accompanied belongings, by –
-
- Non-air conditioned Contract Carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or
- Non-Air Conditioned Stage carriage (i.e. other than air-conditioned stage carriage).
2. Service of transportation of passengers, with or without accompanied belongings, by-
-
- public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
- metered cabs or auto rickshaws (including e-rickshaws).
Provided that nothing contained above (1) and (2) shall apply to services supplied through an electronic commerce operator where such services are liable for payment of GST under 9(5) of CGST Act or 5(5) of IGST Act.
3. Services provided to an educational institution, by way of transportation of students, faculty and staff.
(Educational institution means an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.)
Liability to Pay GST under Reverse Charge Mechanism
As on Date, there is No such service listed under Reverse Charge Mechanism.
Liability to Pay GST where Service Provided through E-Commerce Operator
(as amended till date, last amended on 19/10/2023)
- Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab, motor cycle, or any other motor vehicle except omnibus;
- services by way of transportation of passengers by an omnibus except where the person supplying such service through electronic commerce operator is a company.
SAC Code for Services
| 9964 | Passenger transport services |
| Group 99641 | Local transport and sightseeing transportation services of
passengers |
| 996411 | Local land transport services of passengers by railways, metro, monorail, bus, tramway, autos, three wheelers, scooters and other motor vehicles |
| 996412 | Taxi services including radio taxi & other similar services; |
| 996413 | Non-scheduled local bus and coach charter services |
| 996414 | Other land transportation services of passengers. |
| 996415 | Local water transport services of passengers by ferries, cruises etc |
| 996416 | Sightseeing transportation services by rail, land, water & air |
| 996419 | Other local transportation services of passengers n.e.c. |
| Group 99642 | Long-distance transport services of passengers |
| 996421 | Long-distance transport services of passengers through Rail network by Railways, Metro etc |
| 996422 | Long-distance transport services of passengers through Road by Bus, Car, non-scheduled long distance bus and coach services, stage carriage etc |
| 996423 | Taxi services including radio taxi & other similar services |
| 996424 | Coastal and transoceanic (overseas) water transport services of passengers by Ferries, Cruise Ships etc |
| 996425 | Domestic/International Scheduled Air transport services of passengers |
| 996426 | Domestic/international non-scheduled air transport services of Passengers |
| 996427 | Space transport services of passengers |
| 996429 | Other long-distance transportation services of passengers n.e.c. |
