GST Rate for Passenger Transport Services

The GST Council introduced GST on transport services to create a uniform tax rate structure. After implementing GST, the GST Council in India shall decide the GST rates for services and goods. The GST Council consists of members from the Central Government and members of the State Government. The GST Council conducted multiple meetings in May and June 2017 to decide the GST rate. GST rates are levied in seven slabs namely NIL, 0.25%, 3%, 5%, 12%, 18% and 28%. In this article, let us look at the GST rate for passenger transport services, taxi services, air travel, railways and others.

GST Registration for Transport Service Providers

Majority of the businesses involved in providing passenger transport services would need to obtain GST registration and file GST returns as their annual aggregate sale turnover would be more than Rs.20 lakhs, or they would be involved in the providing of inter-state supply of services.

SAC Code for Passenger Transport Services

GST Rates in India are linked to SAC code or Service Accounting Code, a system of classification developed by the Service Tax Department in India for the levy of service tax. Under the SAC Code, passenger transport services fall under two groups, group 99641 for local transport and sightseeing transportation services of passengers and group 99642 long-distance transport services of passengers. Goods, on the other hand, are classified using the HSN Code, an internationally accepted methodology for classifying goods in the course of import or export by over 200 countries. Also read: GST for Air Travel Agents.

Local Transport and Sightseeing Transportation Services of Passengers

The following are the SAC code for services that fall under local transport and sightseeing transportation services of passengers: SAC Code 996411 - Local land transport services of passengers by railways, metro, monorail, bus, tramway, autos, three-wheelers, scooters and other motor vehicles. SAC Code 996412 - Taxi services, including radio taxi & other similar services. SAC Code 996413 - Non-scheduled local bus and coach charter services. SAC Code 996414 - Other land transportation services of passengers. SAC Code 996415 - Local water transport services of passengers by ferries, cruises, etc. SAC Code 996416 - Sightseeing transportation services by rail, land, water & air. SAC Code 996419 - Other local transportation services of passengers.

Long Distance Transport Services of Passengers

The following are the SAC code for services that fall under local transport and sightseeing transportation services of passengers: SAC Code 996421 - Long-distance transport services of passengers through Rail network by Railways, Metro, etc., SAC Code 996422 - Long-distance transport services of passengers through Road by Bus, Car, non-scheduled long-distance bus and coach services, stage carriage, etc., SAC Code 996423 - Taxi services, including radio taxi & other similar services. SAC Code 996424 - Coastal and transoceanic (overseas) water transport services of passengers by Ferries, Cruise Ships, etc., SAC Code 996425 - Domestic/International Scheduled Air transport services of passengers. SAC Code 996426 - Domestic/international non-scheduled air transport services of Passengers. SAC Code 996427 - Space transport services of passengers. SAC Code 996429 - Other long-distance transportation services of passengers. Know more about SAC code and GST rate for travel agent services.

GST Rates for Transport Services of Passengers

The following are GST rates for transport services of passengers prescribed by the GST Council in a meeting on 19th May 2017.

GST on Railways

The GST rate for transport of passengers by rail (other than sleeper class) has been fixed at 5% with an input tax credit of input services.

GST on Taxi Services

While renting taxi services or motor cabs, the service recipient shall bear the fuel cost. For the availing the taxi services or motor cabs, GST shall apply at the rate of 18%. For transport of passengers by an air-conditioned contract or stage carriage (i.e., buses) and radio taxis, a GST rate of 5% would be applicable with no input tax credit.

GST on Air Travel

The GST rate applicable for the transport of passengers by air in economy class is 5% with input tax credit allowed on input services. GST rate for transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport is also fixed at 5% with input tax credit allowed on input services. The GST rate for transport of passengers by air in other than economy class is 12% with the full input tax credit.

Click here to find GST rate for all services and goods in India. Visit IndiaFilings GST Portal for more information about GST registration and GST filing.