In Re : M/s Opta Cabs Private Limited
GST
2018 (8) TMI 933 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (15) G. S. T. L. 715 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 27-7-2018
Advance Ruling No. KAR ADRG 14/ 2018
GST
Sri. Harish Dharnia, Joint Commissioner of Central Tax, Member (Central Tax) And Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes Member (State Tax)
ORDER
1. M/s Opta Cabs Private Limited, (called as the „Applicant‟ hereinafter), Chitkala, No.216, 6th Main, Nrupathunganagar, J.P.Nagar 7th Phase, Bengaluru – 560076, having GSTIN number 29AACCO5970E1Z9, has filed an application for Advance Ruling under Section 97 of CGST Act,2017, KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act.
2. The Applicant is a Private Limited Company and is registered under the Goods and Services Act,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
whose turnover may not be more than Rs. 12 Lakhs per annum and the applicant is of the opinion that he may not be required GST to be levied on the trip amount.
c. The applicant seeks clarity on GST collection for him to implement their invoicing process of each trip. He also undertakes that he would collect and pay to the Government any taxes on the amounts that would be collected by him. He feels that the taxes applicable would be payable by the drivers and users and not to be collected and paid by him as the amount is not routed through him. He also feels that as the threshold of turnover is Rs. 20 Lakhs per annum, each of the taxi driver would take care of the taxation of services at their end. He also states that in case the aggregate turnover of any of the cab owner/ driver crosses the threshold, he would obtain the declaration and GST Certification to enable the collection of GST amount in their software.
d. The applicant also declares that they are registered taxable person
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
vice from his software application and the amount so billed shall be payable by the consumer to the taxi operator on which he proposes to have no control over the payment. The consumer would book the taxi on his application and the taxi operator would be intimated about the potential customer and on usage, he would be billed by the applicant on behalf of the taxi operator.
4.2 The business model of the applicant is verified and found that he is liable to pay taxes on the services provided to the taxi operators and the applicant company has no dispute in admitting his liability on the monthly usage charges charged on the taxi operators for using the application and is also not a matter before this Authority.
4.3 The services is provided by the taxi operator and the amount is collected from the customer by him and the applicant company has no role to play other than issue of invoice on behalf of the taxi operator to the customer. The customer would log in to the application of the appl
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
hat the electronic commerce operator shall be liable to pay tax on the services provided by a motor cab or maxi cab or motor cycle or radio-taxi, by way of transportation of passengers, if such services are supplied through it and it shall be deemed that the electronic commerce operator is deemed to be supplier in such cases.
There is no doubt that the services of transportation of passengers is supplied to the consumers through the applicant and by virtue of this provision, it shall be deemed that the applicant would be deemed to be the supplier liable to pay tax in relation to the supply of such service by the taxi operator.
5. In view of the foregoing, we rule as follows
RULING
The applicant is liable to tax on the amounts billed by him on behalf of the taxi operators for the service provided in the nature of transportation of passengers through it, in accordance with the provisions of sub-section (5) of section 9 of the Central Goods and Services Tax Act 2017 read with Notifica
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =