2025-VIL-34-AAAR
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SGST AAAR

GST – Tamil Nadu AAAR – Sections 2(31) & 2(93) of the CGST Act, 2017 – Consideration for Service, Recipient of Service - Eligibility to exemption to Transportation Services provided to Educational Institutions - Appellant had sought an Advance Ruling on whether the transportation services provided to school students and staff are exempt from GST under Notification No. 12/2017-Central Tax (Rate) – The AAR ruled that the services provided by the appellant cannot be considered as services provided to the school (educational institution) and are not exempt from GST - Whether the transportation services provided by the appellant to school students and staff can be considered as services provided to the educational institution, and therefore eligible for GST exemption under Notification No. 12/2017-Central Tax (Rate) – HELD - The appellant is the supplier of the transportation service and the recipients of the service are the parents of the students who pay the consideration directly to the appellant. The appellant receives the transportation cost directly from the students and no consideration is being paid by the school towards the transportation charges of either the students or its faculty and staff - Where there is consideration involved, the person who is liable to make the payment would be the recipient and in case no consideration is involved, then the person to whom services are rendered would be the recipient - The educational institution is neither the supplier nor the recipient of the service - The exemption under Notification No. 12/2017-Central Tax (Rate) is available only for services provided by an educational institution to its students, faculty and staff, or services provided to an educational institution. Since the appellant is neither providing services to the educational institution nor receiving services from the educational institution, the exemption is not applicable in the present case – Further, the fact that the transportation permits are obtained in the name of the educational institution or that the appellant has entered into agreements with the schools, does not change the nature of the transaction - the services provided by the appellant by way of transportation of students and staff, shall not be considered as the services provided to the school - The ruling of the AAR is upheld and the appeal is dismissed
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