PASSENGERS TRANSPORT SERVICES - GST RATES SAC CODE 9964

Passenger transport services are a crucial part of the Indian economy. The transportation of passengers is a basic necessity for society and is essential for businesses to function. The Indian government has introduced GST rates and SAC codes for passenger transport services, which are mandatory to comply with.

What are Passenger Transport Services?

Passenger transport services refer to the movement of people from one place to another. This includes services like buses, taxis, railways, metros, etc. These services are used by individuals, businesses, and the government for various purposes like commuting, travel, tourism, etc.

What is the GST Rate for Passenger Transport Services?

The GST rate for passenger transport services is 5%. This rate is applicable to all passenger transport services, including air travel, railways, and road transport services. However, cab aggregators like Uber and Ola are exempted from GST under certain conditions.

According to the GST Council, cab aggregators are exempted from GST if their annual turnover is less than Rs. 20 lakhs. However, if their turnover exceeds this limit, they will have to register for GST and pay tax at the rate of 5%.

What is SAC Code 9964 for Passenger Transport Services?

SAC code 9964 refers to the “Passenger Transport Services” category. This SAC code is applicable to all passenger transport services, including air travel, road transport, and railways.

Under this SAC code, all services related to passenger transport are covered, including transportation charges, parking charges, toll charges, etc. It is important to note that the SAC code is mandatory for all businesses providing passenger transport services.

How to Calculate GST for Passenger Transport Services?

To calculate GST for passenger transport services, the following formula can be used:

GST = (Total Fare – Input Tax Credit) x 5%

Here, Total Fare refers to the total amount charged for the passenger transport service, including all taxes, fees, and charges. Input Tax Credit refers to the tax credit that can be claimed for inputs used in providing the service, like fuel, maintenance, etc.

Conclusion

Passenger transport services are an essential part of the Indian economy, and complying with GST rates and SAC codes is mandatory for all businesses providing these services. The GST rate for passenger transport services is 5%, and the SAC code 9964 is applicable to all passenger transport services. By following the guidelines set by the government, businesses can ensure that they are operating within the law and contributing to the growth of the economy.