Technological service provided to merchants through Namma Yatri APP does not amount to supply by Juspay: AAR [Read Order]

The Karnataka Authority for Advance Ruling has determined that the technological service provided to merchants through the Namma Yatri App is insufficient to supply Juspay. Juspay Technologies Pvt Ltd., registered under the GST Act, is engaged in providing technology services for merchants to connect to payment aggregators and gateways. They have launched the "Namma Yatri" app on the ONDC platform, catering to the auto-rickshaw community in Bengaluru.

The applicant sought an advance ruling on whether the supply by the service provider (subscribed to Namma Yatri) to customers on the Applicant's computer application amounts to supply by the Applicant. Chetan Kumar, the authorized representative, argued that the applicant focuses on creating a system facilitating interaction between consumers and service providers.

The authority observed that the unique business model of the applicant involves connecting auto drivers and passengers, with their role ending at this connection. They don't collect consideration, lack control over the actual service provision, and don't manage ride details or operate a control room/call center.

As a result, the supply happens independently of the applicant, and they only identify the supplier of services without responsibility for operational and completion aspects. The authority concluded that the supply of services is not through the electronic commerce operator, meeting the conditions of Section 9(5) for tax discharge by such operators.

The two-member bench, comprising Dr. M.P. Ravi Prasad (Member - State) and Kiran Reddy T (Member - Central), ruled that the supply by the service provider to customers on the Applicant's computer application does not amount to supply by the Applicant.

To Read the full text of the Order CLICK HERE

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