The bus operators conducted as the companies providing via e-com portals are not included in Section 9(5) of the Central Goods and Service Tax Act, 2017, witnessed in the 52nd GST council meeting.
Starting from January 1, 2022, the responsibility for paying GST on bus transportation services provided through Electronic Commerce Operators (ECOs) has been shifted to the ECOs, as outlined in section 9(5) of the CGST Act, 2017. This adjustment was made in response to a request from an industry association, which pointed out that many bus operators offering services through Electronic Commerce Operators (ECOs) operated with just one or two buses and were unable to undergo the registration process or comply with GST regulations.
In order to strike a balance between accommodating the needs of small operators for smoother business operations and addressing the concerns of larger, more organized players seeking Input Tax Credit (ITC), the GST Council has proposed the exclusion of bus operators incorporated as companies from the scope of section 9(5) of the Central Goods and Services Tax (CGST) Act, 2017. This exemption would enable them to remit GST on their services using their available ITC.
As per Section 9(5) of the CGST Act, Electronic Commerce Operators (ECOs) are obligated to remit tax on various service categories, including Passenger Transport Services, Accommodation services, Housekeeping Services, and Restaurant Services, when these services are provided via ECO.
