Motor vehicle given to state transport under taking and sitting capacity is less than 12 person so is it exempt or not

Question

Imran · Answer

Under Indian GST law, renting or leasing a motor vehicle designed to carry passengers to a State Transport Undertaking (STU) is NOT exempt if the seating capacity is less than 12 passengers. ​It attracts GST (typically at 12% or 18% depending on whether fuel is included). ​Key Rules & GST Breakdown ​The Exemption Rule (Notification No. 12/2017-Central Tax (Rate)): Services provided to an STU by way of giving on hire a motor vehicle are exempt ONLY if the vehicle is designed to carry 12 or more passengers (excluding the driver). ​Seating Capacity Less Than 12: Since your vehicle's capacity is under 12 persons, it falls outside the scope of this specific exemption notification and is fully taxable.

Riya · Answer

Ok thanks

Pooja · Answer

It will not be exempt As,where motor vehicle given to STU is exempt only when seating capacity is more than 12 seats else taxable

Motor vehicle given to state transport under taking and sitting capacity is less than 12 person so is it exempt or not

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