No GST Exemption Where School Bus Services Paid Directly by Students: AAR

No GST Exemption Where School Bus Services Paid Directly by Students: AAR

The applicant, M/s. Protego Services LLP has signed a contract with the Fountainhead Education Trust, which manages Fountainhead School. It offers transportation and catering services only for the students and the staff members of Fountainhead School, Ambetha Water tank, Kunkni Gam, Rander-Dandi Road, Olpad, Surat, Gujarat.

Also Read
No GST on Food Amount Recovered at Subsidised Rates from Employees as per Factories Act: AAR

Question Asked by Applicant

The applicant sought an advance ruling for the following questions:

“(i) Whether the applicant is eligible for exemption as per serial No. 66(b)(i) of the notification No. 12/2017-CT(Rate) dated 28.6.2017 in respect of transportation services provided to the students exclusively on behalf of the school wherein the applicant is charging fees from the students directly.

(ii) Whether the applicant is eligible for exemption as per serial No. 66(b)(ii) of the notification No. 12/2017-CT(Rate) dated 28.6.2017 in respect of catering services provided to the students exclusively on behalf of the school wherein the applicant is charging fees from the students directly.

(iii) If the applicant is eligible for exemption as per entry no. 66(b)(i) & (ii) of the said exemption notification, what is the relevant section and rule under which refund of the tax paid on said exemption services in earlier years can be applied for“.

Gujarat AAR Ruling

As per the Gujarat Authority for Advance Ruling, the applicant (Protego Services LLP) does not qualify for exemption as per serial No. 66(b)(i) of the notification No. 12/2017-CT(Rate) dated 28.6.2017 for the transportation and catering services given to only the students on behalf of the school, where the applicant is charging fees from the students directly.

For the (ii) question, the authority stated, ” In respect of the question seeking to know the relevant section and rule under which refund of the tax paid on said exemption services for earlier years is concerned, we do not intend to answer the same in view of our findings recorded supra.”