11 July 2024
The GST rate applicable to services provided by way of transportation of passengers by a contract carriage is 5%. This rate is specified under Notification No. 11/2017 - Central Tax (Rate) dated 28th June 2017.
Here are the key points related to the GST rate for running buses under contract with Roadways:
### GST Rate: - **Rate:** 5% - **Applicability:** This rate applies to services provided by way of transportation of passengers by a contract carriage, which includes buses operated under contract with Roadways.
### Definition of Contract Carriage: - A contract carriage is a motor vehicle which carries passengers on hire or reward under a contract, and is engaged or hired for the use by a person(s) other than for his own use.
### Example Scenario: - If a company or individual operates buses under a contract with Roadways to transport passengers, the GST applicable on the fare charged for such transportation service is 5%.
### Compliance: - It's important for the service provider (operator of buses) to ensure proper compliance with GST regulations, including issuing tax invoices, maintaining records, and filing GST returns as per the prescribed timelines.
### Conclusion: For running buses under contract with Roadways or any other entity for transportation of passengers, the GST rate applicable is 5%. This rate ensures uniformity in tax treatment for transportation services across India. Always verify the latest GST notifications or consult with a tax professional for specific situations or changes in GST rates or regulations.
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