GST haze holding up funding, innovation at ride-hailing companies
App-based ride hailing services have slammed on the brakes on innovation as well as fresh investments for want of a clarity on the goods and services tax (GST) rates applicable under different business models on taxi and auto-rickshaw rides, said people with knowledge of the matter.
Aggregators cite conflicting rulings by the Authority on Advance Ruling (AAR), they said, as recent rulings in Karnataka held divergent views on the applicability of GST on auto-rickshaw rides, while Tamil Nadu 's authority upheld its applicability.
“Contrary advance rulings have created uncertainty in the industry,” Uber said in an emailed response to ET’s query, while disclosing that it has moved the AAR in Karnataka (AAR-KA) seeking clarification.
