Rickshaw Services Provided Through Ecommerce Platforms To Attract 5% GST, Auto News, AND Auto
Auto rickshaw services provided through e-commerce platforms would attract 5% GST from January 1, 2022. The Ministry of Finance under the Ministry of Finance, by a notification dated November 18, withdrew the exemption from TPS available for automatic rickshaws providing electronic passenger transportation services. commercial platforms.
While passenger transportation services provided by rickshaw drivers in offline / manual mode would continue to be exempt, these services, when provided through an e-commerce platform, would become taxable at 5%. from January 1, 2022.
“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 rickshaw drivers to connect with passengers. The e-commerce industry has taken a very prominent place in the market when it comes to facilitating passenger transportation services due to its cheaper, convenient and flexible way of booking rides.
“The newly inserted provision would make journeys booked through the e-commerce platform more expensive, thus creating a tax disparity for the same service when provided in offline mode compared to online mode,” said Bipin Sapra , tax partner of EY India.