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Uber and Others Seek Clarification from the Govt on GST Applicability to Its Business

App-based Mobility Providers Want Clarification on GST Applicability

Uber and co want to clarify with the govt if they are liable for GST or not The app-based taxi service provider i.e. Uber has approached the finance ministry and GST council along with the Authority for Advance Rulings (AAR) to specify whether their businesses are obligated to tax. After the Karnataka AAR said that the Bengaluru-based direct-to-driver app Namma Yatri was not exposed to pay GST the same has arrived.

The Karnataka AAR kept the dictionary term of the word through and ruled that the only act of associating service providers with the customers via a digital platform does not comprise a supply or service and therefore is not obligated to tax.

The AAR carried that Namma Yatri was connecting the auto driver and passenger and its role ended upon the connection. Hence it is the reason that the clarification has become important. The identical AAR provided the opposite ruling in Opta Cabs.

In the additional judgment, the Tamil Nadu AAR mentioned that connecting small business owners with customers is a service delivered, and hence exposed to tax, in Balat Enterprises. The other players also wish to mention the use of the word via and the tax obligation on their services.

Read Also: Delhi HC Supports Center to Levy GST on App-based Auto Rides

The spokesperson of Uber affirmed to the daily that they would file an application for an advance ruling in Karnataka, asking for clarity on the GST ruling. The cab aggregator has written before the finance ministry and the Karnataka GST council asking for clarification and the resolution of the tax difference.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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