No GST shall be leviable on Juspay towards supply of service supplied by service provider to customers through Juspay's Computer application: AAR [Read Order]

The Karnataka Authority for Advance Ruling has ruled that no Goods and Service Tax should be levied on Juspay towards the supply of service provided by a service provider to customers through Juspay’s computer application.

The applicant, Juspay Technologies Pvt Ltd., registered under the GST Act, is engaged in providing technology services for merchants to connect to their preferred payment aggregators and gateways. They have launched the "Namma Yatri" app on the ONDC platform, a ride-hailing SaaS platform/Mobility as a Service (MaaS) solution for the auto-rickshaw community in Bengaluru.

The applicant sought an advance ruling on whether they are liable to collect and pay GST on the supply of services through their computer application. They argued that they are not liable under specific sections and notifications.

During the proceedings, the authority observed that due to their unique business model, the applicant merely connects auto drivers and passengers, with their role ending at this connection. They don't collect consideration, lack control over the actual service provision, and lack ride details or a control room/call center.

The authority concluded that the supply happens independently of the applicant, and they are only involved in identifying the supplier of services without responsibility for the operational and completion of the ride. Consequently, the applicant doesn't satisfy the conditions of Section 9(5) for the discharge of tax liability by an electronic commerce operator.

After reviewing submissions and provisions, the two-member bench of the Authority of Advance Ruling ruled that the applicant is not liable to collect and pay GST on the supply of services.

Chetan Kumar, Chartered Accountant & Authorized Representative of the applicant, appeared for the personal hearing.

To Read the full text of the Order CLICK HERE

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