GST Amendment: Revised Tax Rates for Passenger Transportation

Change in Terminology: The latest amendment, G.S.R. (E), modifies the language in the Integrated Goods and Services Tax Act, 2017. It substitutes the phrase "omnibus or any other motor vehicle" with "or any other motor vehicle except omnibus" in clause (i).

Omnibus Exception: A new clause, (ia), is introduced, specifying that services related to the transportation of passengers by an omnibus are exempt from the changes. This exception applies unless the service provider, operating through an electronic commerce operator, is a company.

Definition Inclusion: The Explanation section now includes a definition for "Company," aligning it with the meaning assigned in clause (20) of section 2 of the Companies Act, 2013 (18 of 2023).

Effective Date: The amendment is slated to be effective from October 20, 2023.

Issuing Authority: Rajeev Ranjan, Under Secretary to the Government of India, issues the official notification.

Principal Notification History: The principal notification, No. 14/2017–Integrated Tax (Rate), dated June 28, 2017, underwent its last amendment with notification No. 17/2021–Integrated Tax (Rate) on November 18, 2021.

Council Recommendations: These changes are made based on recommendations from the Council to streamline taxation in the transportation sector.

Note: For comprehensive details, refer to the official notification G.S.R. (E).