Ahmedabad Janmarg Ltd. which is a SPV of Municipal Corporation to run buses can’t be treated as Local Authority under GST : AAR

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  • Last Updated on 8 November, 2021

Classification of services - Gujarat Goods and Services Tax Act 2017 - Security services

Case Details: Authority for Advance Rulings, Gujarat Ahmedabad Janmarg Ltd., In re - [2021] 131 taxmann.com 312 (AAR - GUJARAT)

Judiciary and Counsel Details

    • Sanjay Saxena and Arun Richard, Member
    • Hardik Shah, CA and Rutvij Modi, CA for the Applicant.

Facts of the Case

The applicant was engaged in passenger transportation services and it was running BRTS buses in Ahmedabad. It was a public limited company and created as Special Purpose Vehicle (SPV) by the Ahmedabad Municipal Corporation. It filed an application for advance ruling to determine whether it would be treated as local authority under GST.

AAR Held

The Authority for Advance Ruling observed that the applicant was incorporated as Special Purpose Vehicle (SPV), to run and operate buses under Rapid Transit System. The funds of the applicant were not notified as local/municipal funds by any Legislative Act passed by Gujarat Legislature or by Gujarat Treasury Rules. Moreover, it had separate legal existence and was a legal person incorporated with Registrar of Companies. Thus, it would not be classified as local authority.

Case Review

List of Cases Referred to

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