Such companies when offered via any e-commerce platform would change into taxable at 5 per cent
Auto-rickshaw companies offered via e-commerce platforms would entice 5 per cent GST from January 1, 2022. The Income Division underneath the Finance Ministry via a notification dated November 18 withdrew the GST exemption obtainable to auto rickshaws offering passenger transport companies via e-commerce platforms.
Whereas the passenger transport companies offered by auto rickshaw drivers via offline/ handbook mode would proceed to be exempt, such companies when offered via any e-commerce platform would change into taxable at 5 per cent efficient January 1, 2022.
“This modification shall have a direct affect within the case of e-commerce business gamers who present a web-based platform to a lot of auto rickshaw drivers for connecting with riders. E-commerce business has established a really essential place out there in terms of facilitating passenger transport companies owing to its cheaper, handy and versatile method of reserving rides.
“The newly inserted provision would render rides booked via e-commerce platform costlier thereby creating tax disparity for a similar service when offered via offline vis-à-vis on-line mode,” EY India Tax Accomplice Bipin Sapra stated.
