Cab Service from Driver to Passengers through Yatri Sathi App does not amount to supply by App Developer: AAR

The Authority for Advance Ruling (AAR) in West Bengal ruled that the developer of the Yatri Sathi app is not liable for GST on cab services provided by drivers using the app. The app, developed by Natural Language Technology Research (NLTR), connects drivers and passengers but does not control the service or receive payment for rides. The AAR determined that NLTR is not an electronic commerce operator under Section 9(5) of the GST Act, as it merely facilitates the connection between drivers and passengers without substantial involvement in the service provision. This ruling clarifies the GST liability for similar ride-hailing platforms.