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

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.