Ride-hailing giants like Uber are seeking urgent clarification from the government regarding their Goods and Services Tax (GST) liabilities. This comes after a Karnataka Authority for Advance Rulings (AAR) decision exempted Namma Yatri from GST, stating that simply connecting drivers and passengers isn't a taxable service. However, conflicting rulings from other AAR benches have created significant confusion within the industry.
In a significant move, several app-based ride-hailing services, including Uber, have approached the Union Finance Ministry, the Goods and Services Tax (GST) Council, and the Authority for Advance Rulings (AAR) to clarify their tax liabilities. This action follows a recent decision by the Karnataka A
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FAQ :
They are seeking clarity due to conflicting rulings from the Authority for Advance Rulings (AAR) on whether their services are subject to GST.
The Karnataka AAR ruled that Namma Yatri is not required to pay GST because its role in connecting drivers and passengers via a digital platform does not constitute a supply or service.
Yes, the Karnataka AAR made a different ruling in the case of Opta Cabs, and the Tamil Nadu AAR ruled that similar platform services are subject to GST.
They have approached the Union Finance Ministry, the GST Council, and the Authority for Advance Rulings (AAR).
The GST rate on cab services has been 5 per cent since January 1, 2022, with an option to pay 12 per cent for input tax credit benefits.