GST ambiguity casts a shadow on the ride-hailing industry
- Team InGovern
- 17 minutes ago
- 1 min read
Our Founder and MD, Mr. Shriram Subramanian, recently wrote an article on Moneycontrol addressing the GST ambiguity affecting India’s ride-hailing industry.
In the article, he highlights the challenges the sector faces due to differing interpretations of Section 9(5) of the Central GST Act, particularly as platforms like Uber and Ola evolve their business models. While some have transitioned to a SaaS subscription model where drivers pay a flat fee for technology access and passengers pay directly, others continue to follow a commission-based model. This shift has resulted in inconsistent GST rulings, causing confusion and pricing distortions across the industry.
He also highlighted that this lack of regulatory clarity is hindering the growth of the ride-hailing sector and calls for a unified tax framework to ensure equitable treatment across platforms. He noted that, without clear guidance from the GST Council or the courts, the industry will remain mired in regulatory uncertainty, limiting its ability to thrive in a dynamic economy.
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