Bus operator service through ibibo or redus

This query is : Resolved

Shabbir Khan (Querist)
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09 August 2018 One of my client having business of passenger Bus Running and he have more than ten buses previously he was not registered in GST, but when he taken an AC bus "Volvo" he taken GST registration to book his bus service, as most of Bus now booked through App or Online. His Volvo bus now booked through IBIBO and Redbus, and rest of bus are not linked thourgh App or portal. He got Invoivce from IBIBO regularly @ 18 %. my query is :-
1. is my service are taxable as before i know passenger service is exempt.
2. how i show in Return where i am not issuing any invoice & what is treatment of that invoice which shown in GSTR 2A.

Rajesh Kumar

Rajesh Kumar (Expert)
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10 August 2018 Transportation of passengers by non air-conditioned State Carriage is exempted [Entry 17(c) of the Notification 9/2017]. Under Section 2(40) of the Motor Vehicles Act, "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.
Air conditioned state carriages are not exempt. In general it attract a GST rate of 18%, however if the service provider is not taking input credit, the rate of tax is 5% vide Notification 39/2017 dated 13.10.2017.
On invoicing part of IBIBO, unless I understand the transaction, I cannot answer.

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Shabbir Khan

Shabbir Khan (Querist)
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10 August 2018 Rajesh SIr, On Invoicing Part., as i Have stated Volvo Bus Booked through Online app & portal they Issue Invoice to me , my query is that i am not directly book my passenger or issue any invoice to any body, what is my part in that Should i Issue Invoice @ 18, but to whom . where i am only taking service from Portal who give payment after deduction of commission.

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Rajesh Kumar

Rajesh Kumar (Expert)
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15 August 2018 As you are not taking input credit, rate of GST on passenger transport ought to be 5%. Online portals should pay GST @18% on the commission received by them.
Thus, say for example a passenger book a ticket for Rs. 1000. Let us assume that online portal commission is Rs. 200. If online portal commission is Rs. 200, it can issue an invoice of 200 plus 18% to you. It can take its share of Rs. 236 from you and transfer the rest of amount [Rs. 1000-236] to you. In your case, you are providing this service for Rs. 1000/- You need to pay 5% GST. Value of your service is 1000*105/100. You will not take input credit of GST paid on input services.
Who should you issue invoice to? It depends upon as to whom you are providing the services. If you are issuing an invoice to the portal, you can issue an invoice to them for the amount received by you, applying 5% GST. However, in general portals do not take your services, and they act as an agent/aggregator. In that case you can issue invoice to customers. Invoice does not always means commercial invoice. If you issue a ticket, it can be treated as invoice if basic information regarding GST is given on tickets [you can see railway or airline tickets]. If you don't issue tickets, you must be making a chart type of things for all buses. GST information may be included there for GST calculation. However, you must issue proper tax invoice to any person demanding such invoice.
Please talk to your aggregator regarding the nature of transaction you are having with him.