CBIC Urges App-Based Ride-Hailing Firms to Clarify GST Applicability on Booked Rides



Quick Summary
The Central Board of Indirect Taxes & Customs (CBIC) has requested app-based ride-hailing companies to provide their views on Goods and Services Tax (GST) within a week. This follows a meeting discussing different business models and their impact on GST, with companies like Uber, Rapido, and Namma Yatri presenting their cases. A decision is expected by November 12, following a Karnataka High Court directive.

The Central Board of Indirect Taxes Customs (CBIC) has given app-based ride-hailing companies one week to submit their written views regarding the applicability of GST on rides booked through their platforms. A high-level meeting, led by CBIC Chairman Sanjay Kumar Agarwal, took place in Delhi to discuss the varying business models used by companies like Uber, Rapido, and Namma Yatri, which could influence how GST is applied. Uber India highlighted the lack of uniformity in tax applicability
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FAQ :

The CBIC has asked app-based ride-hailing companies to submit their written views on the applicability of GST on rides booked through their platforms within one week.

Companies like Uber, Rapido, and Namma Yatri were involved in the discussion with the CBIC.

Uber highlighted the lack of uniformity in tax applicability across different states and advocated for a standardised taxation model.

Namma Yatri argued that it should not be subject to GST under Section 9(5) of the CGST Act, as it only connects drivers with users and is not involved in fare collection or ride management.

A decision on the GST applicability for app-based ride-hailing services is expected by November 12.

The core issue revolves around the interpretation of Section 9(5) of the CGST Act, which governs GST on services provided 'through' e-commerce operators.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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