The transport services for the students along with the staff of some schools shall not levied to GST, the authority for the advance rulings (Tamil Nadu) ruled. Hence no GST is to be charged on the fees collected via the service provider from the parents.
On February 9, 2023, the applicant registered on the GST portal as an unregistered applicant and intended to file an advance ruling application under the service provider category. Her application included a letter addressed to the Commissioner dated February 3, 2023.
According to her letter, numerous schools in Chennai have approached her to provide transportation services, including pick-up and drop-off for students. The transportation service will only be available to students registered in the respective schools, not to the general public.
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According to her, the school agreed to collect the costs for this service directly from the student’s parents. She also mentioned that instructors and staff will be transported away, with the school footing the bill. She also stated that the bus/van licences would be given in the names of the different institutions.
In the same case, an unregistered GST individual Muniyasamy Abhinaya asks for a ruling on his proposed transport service. Under the agreements with specific schools, the service shall be provided, he said. The permits for both the bus and van will be issued under the school’s name. Payment for student pick-up and drop-off services will come directly from their parents to him, while the school will compensate him for offering these services to their staff.
According to a 2017 notification, the AAR bench has determined that these services qualify for exemption. This notification specifically excludes transportation services provided to educational institutions from taxation.
| Applicant Name | Muniyasamy Abhinaya |
| GSTIN of the applicant | 332300001335AR6 |
| Date | 25.08.2023 |
| TN GST AAR | Read Order |
