Page 12 - Ch8_ EXEMPTION

06. Exemptions relating to Passenger Transportation:-

CCP 08.06.09.00
Deccan Shipping Pvt. Ltd., registered under GST in Andaman and Nicobar islands, provided the
passenger transportation services to the local residents in the ferries owned by it from Neil Island to
Havelock Island.
Determine whether GST is payable or not. [CA Inter RTP May 23]

Answer:-
Ü Transportation of passenger services provided by the private operator- Deccan Shipping Pvt. Ltd.
are exempt from GST.
Ü Transportation of passengers by public transport, other than predominantly for tourism purpose, in a

vessel between places located in India is also exempt from GST vide exemption notification.
Ü As per the CBIC clarification on applicability of GST on private ferry tickets, it is clarified that exemption
would apply to tickets purchased for transportation from one point to another irrespective of whether
the ferry is owned or operated by a private sector enterprise or by a PSU/government.

Ü The expression 'public transport' means that the transport should be open to public. It can be privately or
publicly owned.
Ü Only exclusion is on transportation which is predominantly for tourism, such as services which may
combine with transportation, sightseeing, food and beverages, music, accommodation such as in shikara,

cruise etc.

CCP 08.06.10.00
1) Mr. A boarded Rajdhani Express (fully AC train) from Kanpur on July 5, 20XX and disembarked at

New Delhi. He hired a car from a local cab operator for the whole day on a lumpsum consideration
and visited Delhi's historical monuments. In the night, he took the Metro to International Airport
and boarded a flight to Mumbai. At Mumbai Airport, he booked a Radio taxi through Speed Cab
Operator (ECO) for going to his hotel. Mr. A returned to Kanpur from a different train, Pushpak

Express' in sleeper class. With reference to the Notification 12/2017, examine leviability of GST on
various modes of travel undertaken by Mr. A.
2) High Alps Cable Car Co. runs a cable car to transport pilgrims uphill to a mountain top where a holy
shrine is situated. Examine whether High Alps Cable Car Co. is required to pay any GST.
Answer:-

Legal provision:-
As per the exemption Notification, service of transportation of passengers, with or without accompanied
belongings, by the following modes of travel is exempted:-
a) Railways in a class other than –

i) First class; or
ii) An air-conditioned coach
b) Metro, monorail or tramway
c) Inland waterways

d) Public transport, other than predominantly for tourism purpose, in a vessel between places located in India and
e) Metered cabs or Auto rickshaws (including e-rickshaws).
Discussion & Conclusion:-
In the given case, GST leviability on various passenger transportation services used by Mr. A is as under:-

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