Ride apps switch to subscription model amid conflicting rulings on GST liability

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Uber has switched to a cash-only model for auto rickshaw rides, joining competitors Namma Yatri, Rapido, and Ola, despite conflicting tax rulings by the Authority for Advanced Ruling (AAR) on whether ride aggregators must continue collecting Goods and Services Tax (GST) from passengers.

Since February 18, after it shifted to a subscription model for its auto drivers, Uber has stopped levying 5 per cent GST on auto rides, a tax it previously collected under its commission-based model.

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Ride apps switch to subscription model amid conflicting rulings on GST liability

Uber has switched to a cash-only model for auto rickshaw rides, joining competitors Namma Yatri, Rapido, and Ola, despite conflicting tax rulings by the Authority for Advanced Ruling (AAR) on whether ride aggregators must continue collecting Goods and Services Tax (GST) from passengers.

Since February 18, after it shifted to a subscription model for its auto drivers, Uber has stopped levying 5 per cent GST on auto rides, a tax it previously collected under its commission-based model.

Source Link

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.

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