What is the gst rate on running buses under contract with Roadways.

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tony

tony (Querist)

28 February 2022 Dear Sir,
what is the gst rate on running buses under contract with Roadways.
please advise me.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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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