The Gujarat Authority of Advance Ruling (AAR) held that the e-Commerce Operator is liable for GST Registration for providing an electronic platform for booking cabs.
The applicant, M/s. Gensol Ventures Pvt. ltd intends to own, develop an electronic/digital platform for booking of cabs. The applicant submitted that the drivers will list their electric motor vehicles on the proposed electronic platform/App for booking by the customers for the passenger transportation services; that E-Commerce Operator means any person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce and considering this, the applicant can be termed as an E-Commerce Operator; that the Electric Motor Vehicle operated by the Drivers will be in connection with Central Office and can be tracked through Global Positioning System (GPS) or General Packet Radio Service (GPRS) and qualify as radio taxi.
The applicant has sought the advance ruling on the issue of Whether the applicant is liable to be registered and classified under the Category of E-Commerce Operator, whether the applicant is liable to pay or discharge Goods & Service Tax(GST) in accordance with Section 9(5) of the CGST Act, 2017″.
The ruling was also sought in respect of the Rate of Tax and Service Accounting Code for the services supplied in terms of passenger transportation service under Goods & Service Tax Law.
The Coram of Arun Saxena and Arun Richard held that M/s Gensol is an e-commerce operator and shall be liable to be registered. M/s Gensol is liable to pay GST as per Section 9(5)CGST Act. The value of supply for passenger transportation service shall be the net amount arrived after the deduction of discount (to be provided by M/s Gensol to the customer) from the gross value.
“The SAC for subject supply is 996412. The GST shall be leviable @ 5% (2.5% CGST + 2.5% SGST) subject to the fulfilment of the condition at Entry No.8 (ii) of cited Notification 11/2017-CT(R) dated 28-6-2017,” the AAR ruled.
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