2018 (8) TMI 933 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (15) G. S. T. L. 715 (A. A. R. – GST) – Levy of GST – electronic commerce operator or not – Whether the money paid by the customer to the driver of the cab for the services of the trip is liable to GST and whether the applicant company is liable to pay GST on this amount? – Held that:- It is clear that 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 operat
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Applicant is a Private Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) Whether the money paid by the customer to the driver of the cab for the services of the trip is liable to GST and whether the applicant company is liable to pay GST on this amount 3. The applicant furnishes some facts relevant to the stated activity: a. The applicant states that he is in the business of Taxi Aggregation Service and Taxi Service. He states that the billing is done in the name of the Taxi Driver who provides the service for the particular trip and the taxi driver would collect the amount from the customer on the completion of the trip. The applicant shall not collect the amount on behalf of the taxi driver. b. He states that the applicant is not collecting any charges including trip commission, but only collects service charges for usage of IT services which he would have provided from his end.
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n their software. d. The applicant also declares that they are registered taxable persons under the GST Acts and would charge GST on the monthly service charges recovered from each of the cab operators. 4. FINDINGS & DISCUSSION: 4.1 The transaction of the applicant is verified and found that the applicant proposes to operate a taxi aggregation service wherein he would be providing a mobile application to both the customers and the taxi operators. The taxi operators are proposed to be given a membership and monthly charges would be collected from them. For this usage of facilities, the applicant proposes to collect monthly usage charges from each of the taxi operator and undertakes to collect and pay goods and service tax on the same. The applicant proposes not to charge any commission or any other consideration other than the monthly usage charges from any of the taxi operators. The applicant states that he would not be collecting any application usage charges from the consumers of
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taxi operator to the customer. The customer would log in to the application of the applicant and book the taxi. 4.4 Sub-section (5) of section 9 of the Central Goods and Services Tax Act, 2017 states as under : (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable to pay tax in relation to the supply of such service. Notification No.17/2017 – Central Tax (Rate) dated 28th June, 2017 notifies the services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle as the category of services, the tax on intra-State supplies on which shall be paid by the electronic commerce operator as per the provisions of sub-section (5) of section 9 of the Central Goods and
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