No GST Leviable On Lease Of Buses To Public Transport Department
The Andhra Pradesh Appellate Authority of Advance Ruling ( AAAR ) has ruled that the transaction of hiring/leasing of buses by APSRTC to the Public Transport Division of Government of Andhra Pradesh is eligible for the exemption under Entry 22.
The Andhra Pradesh government had taken up the process of merger of establishment of APSRTC with the state Government and creates the Public Transport Department under the administrative control of Transport Roads and Buildings Department and declared the Public Transport Department under the administrative control of Transport roads and Building Departments. Subsequently, the state government made the decision to take all the buses establishment and infrastructure on lease, so that the total public transport can be undertaken by the Government of Andhra Pradesh directly, through the PTD.
As to the ruling of a coram of Sri Suresh Kishnani and Sri S Ravi Shankar Narayan, the parties involved in this particular case are the recipient of the transport service and the provider. And the they further stated that where a service is capable of different treatment for any purpose based on its description, the most specific description shall be preferred over a more general description. And they confirmed and uphold the AAR.