Ride-Hailing Application Developer not liable to discharge GST Liability for Cab Services by Drivers: AAR

In a significant ruling, the Authority for Advance Rulings (AAR) clarified that a ride-hailing application developer is not required to discharge GST on cab services offered by drivers through the app. The ruling noted that while the app developer facilitates the connection between drivers and passengers, the responsibility for paying GST rests with the individual drivers, not the platform. This decision highlights that intermediaries in such business models are exempt from the direct tax burden on services provided by independent contractors, such as cab drivers, while acting solely as facilitators of those services.