Answer

GST

GST on Uber and Ola rides

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  1. Facts

    Passenger transport through ride-hailing apps is notified under Sec 9(5), so the operator pays GST, generally 5 percent for cab rides. Check the latest rate notification.

  2. Provisions and law

    • Sec 9(5), CGST Act 2017For notified services, the e-commerce operator pays the GST instead of the actual supplier
    • Notification 17/2017-Central Tax (Rate)Notified services under Sec 9(5), including passenger transport by cab through e-commerce operators
  3. Analysis

    On a ₹400 ride, GST of about ₹20 is collected and paid by the operator. The invoice shows the operator's GSTIN. Businesses can sometimes get invoices with their GSTIN for ITC, subject to blocked credit rules.

  4. Conclusion

    1. Download the ride invoice.
    2. Check GST and the GSTIN shown.
    3. Raise errors with the app support.
    4. For business travel, add your GSTIN in the app.

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Checking GST on a bill: GSTIN validity, rate and tax shown

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