Monday, 23 June, 2025

Ola, Uber & Rapido Seek GST Clarity as Subscription Model Sparks Tax Disputes

Ola, Uber and Rapido plan to petition the Central Board of Indirect Taxes and Customs (CBIC) to resolve conflicting GST rulings on their SaaS-style subscription model. Under this approach, drivers pay fixed fees instead of commissions—potentially avoiding the standard 5% levy—and recent Karnataka AAR orders have exempted Namma Yatri while taxing Uber and Rapido. The firms allege this creates unfair competition and seek uniform national guidance.