GST Exemption Applicable on Activity of Hiring/Leasing of Buses by the APSRTC to the Public Transport Division of Government of Andhra Pradesh

Andhra Pradesh Appellate Authority of Advance Ruling (AAAR) in the matter of The Principal Commissioner Central Tax, Guntur CGST Commissionerate has ruled out that GST Exemption Applicable on Activity of Hiring/Leasing of Buses by the APSRTC to the Public Transport Division of Government of Andhra Pradesh.

The Question was Whether the transaction of hiring/leasing of buses by the APSRTC t0 the Public Transport Division (PTD) of Government of Andhra Pradesh is eligible for the exemption under Entry 22 of Notification No 12/2017 Central Tax (Rate)?

The Appellate Authority Ruled Out that “We confirm and uphold the ruling of the AAR.”

M/s Andhra Pradesh State Road Transport Corporation, (APSRTC) was established on 11th January,1958 as per The Road Transport Act, 1950 by G.O Ms No.36, Home (Transport – IV) dated 06-01-1958. As a consequence of bifurcation of the erstwhile United State of Andhra Pradesh into Telangana and Andhra Pradesh, APSTRC (erstwhile) was bifurcated into TSRTC and APSRTC, with some issues still pending regarding the division of assets and liabilities between the two corporations.

APSRTC, though operating under the Public Transport Department (PTD) of Government of Andhra Pradesh, is completely an independent entity with operational autonomy and operates as an independent corporation with its own sources and application of funds. The Central Government owns a stake of 31% with Rs. 35.62 Crores as capital contribution and the State Government of Andhra Pradesh (GOAP) owns the balance stake of 69% with a capital contribution of Rs.79.53 Crores.

The Ruling was made by Sri Suresh Kishnani (Member) (Central Tax) and Sri S. Ravi Shankar Narayan (Member) (State Tax).

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