One Week Time given to share views to Ride-Hailing Companies, CBIC assures Clarification on GST

The Central Board of Indirect Taxes & Customs (CBIC) has given ride-hailing companies one week to submit their views on the applicability of GST for rides booked through their platforms. During a meeting led by CBIC Chairman Sanjay Kumar Agarwal, representatives from companies like Uber and Namma Yatri discussed inconsistencies in tax applicability. Uber highlighted its algorithm-based pricing model, while Namma Yatri explained its distinct business model, which does not control rides or set fares. The CBIC Chairman indicated that the taxation of e-commerce businesses under Section 9(5) of the CGST Act, 2017, hinges on the interpretation of the word “through.” The CBIC will review the companies’ submissions before issuing clarifications. This meeting follows a Karnataka High Court direction to address Uber India’s concerns about GST inconsistencies and ensure a level playing field for all stakeholders.