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Taxation Central Ministry of Finance Central Goods and Services Tax Act, 2017

Changes in GST Rates for Transportation Services

19-Oct-2023 | 16/2023-Central Tax (Rate)

Ministry of Finance has issued a Notification amending the Notification No. 17/2017- Central Tax (Rate), dated the 28th June, 2017, effective from 20th October 2023.

Amendment to Clause (i): The notification modifies clause (i) to exclude omnibuses from the definition of motor vehicle. It explicitly states, any other motor vehicle except omnibus. This change indicates a reclassification in the tax rate for omnibuses.

Introduction of Clause (ia): A new clause (ia) has been introduced, which addresses services involving the transportation of passengers by an omnibus. Notably, this clause exempts companies supplying such services through electronic commerce operators from this exemption.

Explanation Item (d): The notification defines Company as per the Companies Act, 2013. This definition is crucial for understanding the exemption criteria mentioned in clause (ia).

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