What will be implication of GST on Transporters, Travels and Tour Operator and their allied services? Current GST taxation is in line with what was taxable under Service tax and no major changes has taken place under GST except the introduction of RCM (Reverse Charge Mechanism).
List of Transportation and Travels Services which are exempted under GST
Transport of passengers, with or without accompanied belongings, by –
(a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;
(b) non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or
(c) stage carriage other than air-conditioned stage carriage.
Transport of passengers, with or without accompanied belongings, by –
(a) air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;
(b) non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or
(c) stage carriage other than air-conditioned stage carriage.
Service of transportation of passengers, with or without accompanied belongings, by—
(a) railways in a class other than—
(i) first class; or
(ii) an air-conditioned coach;
(b) metro, monorail or tramway;
(c) inland waterways;
(d) public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
(e) metered cabs or auto rickshaws (including e-rickshaws).
Services by way of transportation of goods-
(a) by road except the services of—
(i) a goods transportation agency;
(ii) a courier agency;
(b) by inland waterways.
Services by way of transportation of goods by an aircraft from a place outside India upto the customs
station of clearance in India
Services by way of transportation by rail or a vessel from one place in India to another of the following
goods:
(a) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
(b) defence or military equipments;
(c) newspaper or magazines registered with the Registrar of Newspapers;
(d) railway equipments or materials;
(e) agricultural produce;
(f) milk, salt and food grain including flours, pulses and rice; and
(g) organic manure.
Services provided by a goods transport agency, by way of transport in a goods carriage of –
(a) agricultural produce;
(b) goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;
(c) goods, where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty;
(d) milk, salt and food grain including flour, pulses and rice;
(e) organic manure;
(f) newspaper or magazines registered with the Registrar of Newspapers;
(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
(h) defence or military equipments.
Services by way of giving on hire –
(a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
(b) to a goods transport agency, a means of transportation of goods.
Services by way of loading, unloading, packing, storage or warehousing of rice.
Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside India.
LIST OF SERVICES TAXABLE UNDER GST FOR TRANSPORTER AND TRAVELS INDUSTRY: GST RATES
Passenger transport services: 9964
(i) Transport of passengers, with or without accompanied belongings, by rail in first class or air conditioned coach. 5% GST for (i), (ii) (iii), (iv), and (vi) NO ITC
(ii) Transport of passengers, with or without accompanied belongings by-
(a) air conditioned contract carriage other than motorcab;
(b) air conditioned stage carriage;
(c) radio taxi.
Explanation.-
(a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ;
(c) “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).
(iii) Transport of passengers, with or without accompanied belongings, by air in economy class.
(iv) Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport, as notified by the Ministry of Civil Aviation.
vi) Transport of passengers by motorcab where the cost of fuel is included in the consideration charged from the service recipient.
(v) Transport of passengers by air, with or without accompanied belongings, in other than economy class. 12% GST with ITC
(vii) Passenger transport services other than (i), (ii) (iii), (iv), (v) and (vi) above. – 18% GST
Goods transport services -9965
(i) Transport of goods by rail (other than services specified at item no. (iv)). 5% GST for (i), (ii) (iii), NO ITC
(ii) Transport of goods in a vessel.
(iii) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use).
Explanation.- “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called
(iv) Transport of goods in containers by rail by any person other than Indian Railways (GST 12%)
(v) Goods transport services other than (i), (ii), (iii) and (iv) above – 18% GST with ITC
Rental services of transport vehicles -9966
(i) Renting of motorcab where the cost of fuel is included in the consideration charged from the service recipient. GST of 5% NO ITC
(ii) Rental services of transport vehicles with or without operators, other than (i) above GST Rate is 18% with ITC
Supporting services in transport – 9967
(i) Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use). Explanation.- “goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. GST Rate of 5% NO ITC
(ii) Supporting services in transport other than (i) above GST Rate of 18% with ITC
Support services- 9985
(i) Supply of tour operators services. Explanation.- “tour operator” means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours. – GST of 5% NO ITC
(ii) Support services other than (i) above – GST Rate of 18% with ITC
TRANSPORTATION SERVICES UNDER REVERSE CHARGE
1. Services provided or agreed to be provided by a goods transport agency (GTA) in respect of transportation of goods by road to below listed
(a) any factory registered under or governed by the Factories Act, 1948;
(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India;
(c) any co-operative society established by or under any law;
(d) any person registered under CGST/SGST/UTGST Act;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons.
(g) Casual taxable person
(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India;
(c) any co-operative society established by or under any law;
(d) any person registered under CGST/SGST/UTGST Act;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons.
(g) Casual taxable person
100% GST Will be payable by Service Recipient
2. Radio taxi or Passenger Transport Services provided through electronic commerce operator , Recipient of Services can be any person, GST will be payable by 100% by Electronic Commerce Operator
DETAILED SAC CODE : List of SAC code for TRANSPORTER
| Heading No. 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. | |
| Heading No. 9965 | Goods Transport Services | |
| Group 99651 | Land transport services of Goods | |
| 996511 | Road transport services of Goods including letters, parcels, live animals, household & office furniture, containers etc by refrigerator vehicles, trucks, trailers, man or animal drawn vehicles or any other vehicles. | |
| 996512 | Railway transport services of Goods including letters, parcels, live animals, household & office furniture, intermodal containers, bulk cargo etc | |
| 996513 | Transport services of petroleum & natural gas, water, sewerage and other goods via pipeline | |
| 996519 | Other land transport services of goods n.e.c. | |
| Heading No. 9966 | Rental services of transport vehicles with or without operators | |
| Group 99660 | Rental services of transport vehicles with or without operators (18% but when cost of fuel is included in rate then 5% without ITC) | |
| 996601 | Rental services of road vehicles including buses, coaches, cars, trucks and other motor vehicles, with or without operator | |
| 996602 | Rental services of water vessels including passenger vessels, freight vessels etc with or without operator | |
| 996603 | Rental services of aircraft including passenger aircrafts, freight aircrafts etc with or without operator | |
| 996609 | Rental services of other transport vehicles n.e.c. with or without operator |
| Heading No. 9967 Group 99674 | Supporting services for road transport | |
| 996741 | Bus station services | |
| 996742 | Operation services of National Highways, State Highways, Expressways, Roads & streets; bridges and tunnel operation services. | |
| 996743 | Parking lot services | |
| 996744 | Towing services for commercial and private vehicles | |
| 996749 | Other supporting services for road transport n.e.c. |
| Group 99679 | Other supporting transport services | |
| 996791 | Goods transport agency services for road transport | |
| 996792 | Goods transport agency services for other modes of transport | |
| 996793 | Other goods transport services | |
| 996799 | Other supporting transport services n.e.c |
| Heading No. 9985 Group 99855 | | Travel arrangement, tour operator and related services – ( 998556 5% rest all 18% GST) |
| 998551 | Reservation services for transportation | |
| 998552 | Reservation services for accommodation, cruises and package tours | |
| 998553 | Reservation services for convention centres, congress centres and exhibition halls | |
| 998554 | Reservation services for event tickets, cinema halls, entertainment and recreational services and other reservation services | |
| 998555 | Tour operator services -5% | |
| 998556 | Tourist guide services | |
| 998557 | Tourism promotion and visitor information services | |
| 998559 | Other travel arrangement and related services n.e.c |