GST
GST on Uber and Ola rides
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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.
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
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.
Conclusion
- Download the ride invoice.
- Check GST and the GSTIN shown.
- Raise errors with the app support.
- For business travel, add your GSTIN in the app.
A Savvy can do this for you
Checking GST on a bill: GSTIN validity, rate and tax shown
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