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Passenger Transport Services under GST

May 30th, 2019 in GST

GST council decides the GST rate on goods and services and the council includes state and central government member. To decide the GST rate slab there were various meetings that took place in 2017. After discussion they decided the 7 rate slabs for GST namely 0%, 0.25%, 3%, 5%, 12%, 18% and 28%. And in this article we will discuss different GST rates on passenger transport services under GST including exempted one:

SAC Code for Transport of Persons

Goods are classified using HSN code similarly service are classified using SAC (Service Accounting Code). Considering this, SAC code is applicable to transport services and the group under this heading are local transport and sightseeing transportation service (99641) and long distance transport service of passengers (99642).

Local Transport and Sightseeing Transportation Services of Passengers

Here is the list of Service Accounting Code that is applicable to local transport and sightseeing transportation services of passengers:

S.NO

SAC CODE

Local Transport and Sightseeing Transportation Services of Passengers

1

996411

It is applicable when the passenger travels by railways, metro, monorail, bus, autos, tramway, 3 wheelers, scooters and other motor vehicles.

2

996412

This SAC code is applicable when the passenger uses taxi services including radio taxi & other taxi services.

3

996413

If a passenger travels through non-scheduled local bus and coach charter services.

4

996414

This will apply if the passenger other means of land transportation

5

996415

When the passenger travels through local water transport services such as ferries, cruises, etc.

6

996416

When the passenger uses sightseeing transportation services through any means of transport such as rail, land, water & air.

7

996419

This SAC code will apply when they travel through other local transportation services.

Long Distance Transport Services of Passengers

The SAC code for local transport and sightseeing transportation services of passengers are listed below:

S.NO

SAC CODE

Long Distance Transport Services of Passengers

1

996421

This SAC is applicable when the passenger travels through Rail network, Metro, etc.

2

996422

When the passengers travel through Road via Bus, Car, stage carriage, etc.

3

996423

This SAC code is related to the taxi services consisting of radio taxi & other similar services.

4

996424

Coastal and overseas water transport services of passengers such as transporting passenger through Ferries, Cruise Ships, etc.

5

996425

Domestic or international Air transport services of passengers that is scheduled.

6

996426

Domestic or international air transport services of Passengers that is not scheduled.

7

996427

Transport services of passengers concerned with space

8

996429

Others

Let us now see other transport services via different means and the applicable GST rate on such transport services.

Transport of Passengers by Road

The local road transport service falls under group 99641 and long distance transport service falls under group 99642.

If a passenger travels by motor cab and pays for fuel cost too. In that case, 18% GST rate will be a levy on such transport.

On the other hand, if a passenger travels by an air-conditioned stage carriage (bus) and radio taxis then in this case 5% GST rate will apply.

Transport of Passengers by Rail

The SAC code for local rail transport service falls under heading 996411 and long distance rail transport service falls under 996421.

The GST rate on rail transport is fixed at 5% (2.5% CGST and 2.5 SGST/UTGST) or 5% IGST if you travel in first class or air-conditioned coach. You can (Notification No. 11/2017-CT (Rates) and 8/2017-IT (Rates) dated 28-6-2017, effective from 1-7-2017).

However, services that are transported in the metro, monorail or tramway and in railways in a class other than the first class or air-conditioned coach are exempt from GST. (Notification No. 12/2017-CT (Rates) and 9/2017-IT (Rates) both dated 28-6-2017, effective from 1-7-2017).

Transport of Passengers by Water

The SAC code for local water transport service falls under heading 996415 and long distance water transport service falls under group 996424. Generally, the GST rate on such transport is applicable at 18%.

Howsoever, service of transportation of passengers in inland waterways is exempt from GST. (Notification No. 12/2017-CT (Rates) and 9/2017.IT (Rates) effective from 1-7-2017 both dated 28-6-2017).

Transport of Passengers by Air

The Service accounting code for the transport of passenger by air falls under group 99642.

Generally, in the following cases, the rate is 5% (2.5% CGST and 2.5% SGST) or 5% IGST on the transport of passengers by air.

  • Economy class
  • Embarking from or terminating in regional connectivity scheme airport. ITC of service is available but not for goods.

But it shall be noted that the transport of passengers by air in other than economy class is 12%. However, there is no restriction on the input tax credit claim.

 

 

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