Question13:

What is the gst rate on services where buses are supplied under contract on a monthly basis to another bus operator?

Answer:

According to the provisions of Section 7(1) of CGST Act, 2017  renting of vehicle is covered under the term 'Supply' and would be leviable to tax under the GST regime at the appropriate rate applicable according to HAS Code 9966 notified under Notification No. 11/2017-CT (R) dated 28.06.2017 as amended.  The applicable rate of tax is 5% if ITC on the vehicle has not been availed and 12% if ITC on the vehicle has been availed. (Reply dt. 04/12/2017)