- The Central government is considering amending GST rules for ride-hailing companies to ensure consistent tax treatment.
- Ola, Uber, and Rapido are expected to meet with CBIC officials to discuss tax implications of their business models.
- The government may amend Section 9(5) of the CGST Act, but it is uncertain if this will be discussed in the upcoming GST Council meeting.
- There are inconsistencies in GST treatment for cab aggregators due to ambiguities in Section 9(5) of the CGST Act.
- Two business models exist: commission-based and SaaS.
- Commission-based model involves aggregators charging a commission on rides, with GST applied to the ride fare.
- SaaS model involves platforms providing software services to drivers, with GST applied only to subscription fees.
- Legal complexities arise from the interpretation of services provided through e-commerce operators under Section 9(5).
- Conflicting rulings exist, with some platforms not considered under Section 9(5) as they only provide software.
Source: a2ztaxcorp.net
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.
