The Karnataka government has reportedly sought to cap the convenience fee for auto rickshaw rides at 5% as part of an ongoing dispute with cab aggregators.
Senior officials, however, told the Economic Times that the convenience fee was exclusive of GST, which meant that users would have to pay an additional 5% GST on the total of the base fare and service charge. This decision follows the briefing of CM Basavaraj Bommai by state transport secretary NV Prasad and transport commissioner SN Siddaramappa. In the interim, the Karnataka High Court set the convenience fee charged by ride hailing apps at 10% of the fare, exclusive of GST.
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The Karnataka government has reportedly sought to cap the convenience fee for auto rickshaw rides at 5% as part of an ongoing dispute with cab aggregators.
Senior officials, however, told the Economic Times that the convenience fee was exclusive of GST, which meant that users would have to pay an additional 5% GST on the total of the base fare and service charge. This decision follows the briefing of CM Basavaraj Bommai by state transport secretary NV Prasad and transport commissioner SN Siddaramappa. In the interim, the Karnataka High Court set the convenience fee charged by ride hailing apps at 10% of the fare, exclusive of GST.
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
StartupNews.fyi is a leading global startup and technology media platform known for its end-to-end coverage of the startup ecosystem across India and key international markets. Launched with the vision of becoming a single gateway for founders, investors, and ecosystem enablers, StartupNews.fyi has grown steadily over the years by publishing tens of thousands of verified news stories, insights, and ecosystem updates, reaching millions of startup enthusiasts every month through its digital platforms and communities.
