Transport services to civic bodies not exempt from GST in each & every case

Companies supplying vehicles to local bodies must prove that the underlying activities are exempt services, such as public health, in order to avoid paying tax, ruled Gujarat-based AAR

Companies supplying transport to local authorities have to prove that the activities for which the vehicles are used are exempt services such as public health, if they want to avoid paying goods and services tax (GST), ruled the Gujarat-based authority for advance ruling (AAR).

Otherwise, GST of 5, 12 and 18 per cent will be imposed depending on usage, say experts on the basis of the ruling.

Providing details of the case, Harpreet Singh, Indirect Tax Partner at KPMG in India, said Ahmedabad-based Varun Travel wanted to know from AAR if GST would be imposed on the transporting health department