- App-based transportation platforms have changed how people travel in India.
- Platforms like Ola, Uber, and Rapido are popular due to the gig economy.
- GST law recognizes these platforms as e-commerce operators.
- Section 9(5) of the CGST Act requires e-commerce platforms to pay tax for services supplied through them.
- Notification No. 17/2017-Central Tax (Rate) includes passenger transportation services.
- The term ‘supplied through’ is crucial in determining tax liability.
- Some platforms use a subscription model, charging drivers a monthly fee instead of a commission.
- This model aims to position platforms as facilitators, not service providers.
- Karnataka Authority for Advance Ruling has exempted some companies from GST under this model.
Source: lakshmisri.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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