The Authority for Advance Ruling (AAR) of Andhra Pradesh stated that renting the Non-A/C buses for Andhra Pradesh State Road Transport Corporation (APSRTC) will attract Goods and Services Tax at 18% rate 
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The Andhra Pradesh State Road Transport Corporation ( APSRTC) is an applicant in this matter and reached AAR on 15/11/2019 by filing the GST ARA-01 form for seeking an advanced ruling. it is a public sector undertaking and capital or fund invested in it belong to the Central and state government. APSRTC manages the transportation of passengers (stage carriers and contract carriers) as well as transportation of goods.
The ruling has been stated by D. Ramesh, Additional Commissioner of State Tax and M. Sreekanth, Joint Commissioner of Central Tax on an application.
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The AAR observed that these NON-A/C buses had been rented and given the name and look of APSRTC and provided various rental services such as transporting of employees and students of other organizations or departments, transporting passengers to Sabarimala, transporting public to meetings conducted by political parties, etc.
Thus AAR ruled that the applicant is the provider of the rental services thus has to pay GST at 18% (9% CGST+9% SGST) Rate.
