Services relating to transportation of passengers
The following services relating to transportation of passengers, with or without accompanied belongings, have been specified in the negative list.
- A stage carriage;
- Railways in a class other than (i) first class; or (ii) an AC coach;
- Metro, monorail or tramway;
- Inland waterways;
- Public transport, other than predominantly for tourism purpose, in a vessel, between places located in India; and
- Metered cabs, radio taxis or auto rickshaws.
Services by way of giving on hire of motor vehicles to state transport undertakings does not covered in this negative list entry. However such services provided by way of hire of a motor vehicle meant to carry more than 12 passengers to a State transport undertaking is exempt.
Specific exemption is available to services of transport passengers by a contract carriage for transportation of passengers, excluding tourism, conducted tours, charter or hire.
Services by way of transportation of passengers on a vessel, from say Chennai to Port Blair (mainland – island) or Port Blair to Havelock (inter island), are covered in the negative list entry since such transportation is between two places located in India, and transportation is not predominantly for tourism purpose
The words ‘other than predominantly for tourism purpose’ qualify the preceding words “public transport”. This implies that the public transport by a vessel should not be predominantly for tourism purposes. Normal public ships or other vessels that sail between places located in India would be covered in the negative list entry even if some of the passengers on board are using the service for tourism as predominantly such service is not for tourism purpose. However services provided by leisure or charter vessels or a cruise ship, predominant purpose of which is tourism, would not be covered in the negative list even if some of the passengers in such vessels are not tourists.