-
ALSO READ
Gujarat AAR rules parathas are not ready-to-eat, puts them under 18% GST
AAR rules 18% GST on e-voucher traders, on plea by marketing services firm
States slam FM plan to not extend GST compensation after June 2022
GST on ice cream parlours may lead to litigation, say experts
Liaison office of WEF in India exempt from GST, rules AAR Maharashtra
-
The Authority for Advance Rulings, Maharashtra has ruled that renting or leasing of vehicles registered in tourist category for transportation of Covid-19 passengers by a tours and travels operator would be liable to pay goods and service tax (GST). Experts described the decision as callous on front-line workers.
An applicant company, a tourist operator, submitted that provision of Toyota Innova or equivalent six-seater vehicles with all India tourist permit to carry Covid-19 patients for medical treatment is exempt from GST.
The company had entered into an agreement with Mumbai Corporation of Greater Mumbai (MCGM) to use its vehicles for transporting these patients for medical treatment.
The company based its arguments on the fact that this is a pure service to the local authority -- MCGM.
However, AAR held that there is nothing on record to show that Innova vehicles supplied by the applicant had been converted into ambulances. Besides, there is no proof of these vehicles transporting only Covid patients for medical treatment, it said.
Also, vehicles were not registered with the regional transport office (RTO) for use as ambulances and instead were registered for use as tourist vehicles, it said.
Rajat Mohan, senior partner at AMRG & Associates, said taxing the transportation of Covid-19 patients by tours and travels operators on behalf of the government agencies is a harsh penalty on a big segment of front-line workers.
"Strong legal arguments have backed this ruling. However, it fails on moral grounds," he said.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU