AAR says no GST exemption for tourist vehicles carrying Covid patients

The Authority for Advance Rulings, Maharashtra has ruled that renting or leasing of vehicles registered in tourist category for transportation of Covid-19 passengers by a tours and travels operator would be liable to pay goods and service tax (GST). Experts described the decision as callous on front-line workers.

An applicant company, a tourist operator, submitted that provision of Toyota Innova or equivalent six-seater vehicles with all India tourist permit to carry Covid-19 patients for medical treatment is exempt from GST.

The company had entered into an agreement with Mumbai Corporation of Greater Mumbai (MCGM) to use its vehicles for transporting