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Travellers Opting for Offline Mode as GST on Non-AC Bus Rides Pushes Them Away from Online Platforms

  • The imposition of 5% GST on non-AC auto-rickshaw or bus rides bought online is causing consumers to shift offline to avoid the tax.
  • The proportion of online bookings for bus tickets has decreased from 41% to 22% due to the GST.
  • The government justifies the levy and it has been legally endorsed.
  • Non-AC stage carriages are subject to GST if services are availed through electronic commerce operators (ECOs).
  • ECOs are considering taking up the matter with the government again.
  • The imposition of GST on bus tickets purchased through ECOs goes against the government’s Digital India mission.
  • The government should review its decision as it disincentivizes online commerce for price-sensitive consumers.
  • The move is not conducive to encouraging domestic startups.
  • Non-uniform GST policy implementation affects digital penetration in the transport system.
  • A uniform approach to policy implementation would promote digital penetration and efficiency in the sector.

Source: a2ztaxcorp.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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