Such services provided through any e-commerce platform will become taxable at five percent
Auto-rickshaw services provided through e-commerce platforms will attract 5 per cent GST with effect from January 1, 2022. The Department of Revenue, under the Ministry of Finance, has withdrawn the GST exemption available to auto rickshaws providing passenger transport services through a notification dated November 18. commerce forum.
While the exemption on passenger transport services provided by auto rickshaw drivers through offline/manual mode will continue, when such services provided through any e-commerce platform will be taxed at five per cent with effect from January 1, 2022. Will be eligible
“This amendment will have a direct impact in the case of players in the e-commerce industry who provide an online platform for a large number of auto rickshaw drivers to connect with the riders. The e-commerce industry has established a very important position in the market. When it comes to facilitating passenger transport services due to its cheap, convenient and flexible mode of booking ride.
Bipin Sapra, Tax Partner, EY India said, “The newly incorporated provision will make rides booked through e-commerce platforms costlier, thereby creating tax disparity for the same service, when provided offline through online mode.” “
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