Quick Summary
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 AAR, which ruled that Bengaluru-based direct-to-driver app Namma Yatri is not required to pay GST. According to reports, this decision has prompted confusion and concern among stakeholders in the ride-
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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.
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