Pranav B Prem

The Gujarat Authority for Advance Ruling (GAAR) has held that transportation and catering services provided to students of a school are not eligible for Goods and Services Tax (GST) exemption when the fees for such services are collected directly from students or their parents instead of the educational institution.

Also Read: NCLT Mumbai: Electricity Company Cannot Deny Connection To Auction Purchaser Of Corporate Debtor’s Property Over Past Dues Once Claims Are Filed Before Liquidator

The ruling was delivered in an application filed by M/s Protego Services LLP, a Surat-based service provider engaged in offering transportation and catering services to Fountainhead School, which is run by the Fountainhead Education Trust. The applicant contended that it was eligible for exemption under Serial No. 66(b)(i) and (ii) of Notification No. 12/2017-Central Tax (Rate), which exempts transportation and catering services provided to educational institutions up to the higher secondary level.

Protego Services argued that since it was providing services exclusively to the students and staff of Fountainhead School, it should be treated as supplying exempt services. It further relied on decisions in Muniyasamy Abhinaya (2023), Akshar Travels, and Sangam Travels to claim that collecting fees directly from parents would not disqualify the exemption.

The Authority, however, examined the agreements between the Trust and the applicant and found a clear distinction. While invoices for services provided to school staff were raised on the Trust, charges for student transportation and catering were collected directly from parents. GAAR observed: “The consideration towards the transportation and catering activity are received by the applicant from the students concerned and since no consideration is received by the school administration, it becomes clear that no services are rendered by the school to its students in relation to transportation and catering.”

It further noted that for exemption to apply, services must be provided “to the educational institution” itself. Since the applicant was receiving payments directly from students, the primary condition under Notification No. 12/2017 was not met. Accordingly, GAAR ruled that the applicant was not entitled to GST exemption on transportation and catering services billed directly to students.

On a related query about eligibility to claim refunds of taxes already paid in earlier years, the Authority declined to answer, holding that refund issues fall outside the scope of Section 97(2) of the CGST Act, 2017, which governs the admissibility of advance ruling applications.

Also Read: NCLT New Delhi: Composite Section 9 Petition Based On Pooled Debt By Multiple Operational Creditors Not Maintainable Under IBC

The applicant also sought modification of its legal name in the ruling, pointing out that the entity had been converted from a Limited Liability Partnership to a Private Limited Company in May 2025. The Authority rejected this request, noting that the application had been filed in the name of M/s Protego Services LLP and therefore could not be altered at the stage of ruling. GAAR ultimately ruled that the applicant is not eligible for GST exemption on transportation and catering services provided to students where charges are collected directly from parents. It also refused to entertain the applicant’s query on refund eligibility and rejected the request to amend the applicant’s name in the ruling.

 Applicant’s Name: M/s Protego Services LLP