I saw an ET report today on IAMAI’s representation ahead of the upcoming GST discussions on app based rides.
The headline says industry wants the 5% GST dropped. The deeper issue is more precise: who is legally liable to discharge the tax, and who ultimately bears its economic cost? The Captain, the passenger or the platform?
Section 9(5) places the statutory responsibility on the electronic commerce operator. But should every app be treated as the commercial intermediary merely because it enables discovery?
The question is sharper in a subscription based SaaS model. The platform generates leads and may provide price discovery through an indicative fare for negotiation. It does not charge the Captain or passenger for the ride, collect the fare, issue the ride invoice or control fulfilment. The Captain and passenger transact directly. The platform earns only a subscription fee.
GST can apply to that subscription service. But imposing it on the passenger fare creates a liability on consideration the platform neither receives nor controls. If passed to Captains, take home pay falls. If passed to passengers, affordability and disposable income suffer. If absorbed by the platform, a driver first model built on digitisation and economic participation becomes unviable.
This is not about removing GST from the ecosystem. It is about aligning liability with the actual transaction. A functional test based on fare control, fare collection, invoicing and ride execution can distinguish economic intermediation from technology access.
Clarity here would protect livelihoods, preserve affordable mobility and support the vision of Viksit Bharat through digitisation and economic growth.
No fare control. No fare collection. No liability on passenger fare.
🔥 SCOUT EXPOSED MAHI’S VICTIM NARRATIVE🚨
Turning a tiny situation into a huge emotional issue by dragging family and kids into it just to gain sympathy is a seriously low strategy. 🤮
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Sad truth 🚨
Bigg Boss TRP is crashing📉 because of the constant overglazing of this Qazi.
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