Page 75 - CA Final GST

Badlani Classes

Stage carriage v. Contract Carriage: In case of stage carriage, the person can get in or
get down at any stage of the journey (generally, local transport). In contract carriage, the
person will have to buy the ticket for the whole journey i.e. starting point to ending point.
• Leisure or charter vessels or cruise ship-Taxable: Services provided by leisure
or charter vessels or a cruise ship, predominant purpose of which is tourism, would
not be covered in exemption even if some of the passengers in such vessels are
not tourists.
• Transport of passengers, with or without accompanied belongings, by:
- ropeway,
- cable car or
- aerial tramway
is liable to GST.
• Value shall include all taxes except GST i.e. Passenger Tax.
• Services by way of giving on hire to a State transport undertaking, a motor vehicle
meant to carry more than 12 passengers are exempt.(entry 22)
Que. Transport of passengers by air: Compute value of taxable services of transport of
passengers of air from the following data relating to sums received exclusive of GST-
1- Passengers embarking at Assam : `10 lakh;
2- Passengers where journey terminated at Manipur: `4 lakh:
3- Passengers embarking at a ‘Regional Connectivity Scheme Airport’: `40 lakh;
4- Amount charged from passengers for flights starting from Dubai to Delhi:`400 lakh;
5- Amount charged from passengers from flights starting from Delhi to Dubai:`540 lakh.
this sum-
• includes passenger taxes levied by government and shown separately on
ticket:`140 lakh
• 25% is towards economy class and balance is towards other classes.

Ans. Computation of taxable value and gross GST
Particulars Value
Passengers embarking at Assam (Embarking at N/E state) Exempt
Passenger journey terminated at Manipur (Terminating at N/E state) Exempt
Passenger embarking at Regional Connectivity Scheme Airport `40 lakh
Amount charged from passengers for flights starting from Dubai to POS outside
Delhi [Place of embarkation is Dubai viz. Outside India; hence, place India
of supply is outside India and not taxable]
Amount charged from passengers from flights starting from Delhi to
Dubai [As per section 15, all taxes except GST shall form part of
value. Hence, passenger taxes shall form part of the value]
• Economy Class value is 25% of`540 lakhs `135 lakh
• 75% of 540 lakh= 405 lakh is towards other classes `405 lakhs
Total Tax 580 lakhs

Que. Compute taxable value of services of Indian railways-
1- Transport of passengers by general class: `2,000 crores:
2- Transport of passengers by sleeper class: `8,000 crores:
3- Transport of passengers by AC: `12,000 crores:
st
4- Transport of passengers by 1 Class: `8,000 crores.
Ans. Computation of taxable value
Particulars Amount
Transport of passengers by general class Exempt
Transport of passengers by sleeper class Exempt Page74
Transport of passengers by AC 12,000

Central Goods & Services Tax Act, 2017