New Delhi: The Delhi High Court ruled regarding GST rates that Ola and Uber rides will get more expensive.
In a blow to ride-sharing companies like Uber and Ola, the Delhi High Court upheld the Central Government’s decision to apply GST on auto rickshaw journeys booked by commuters through ride-sharing apps.
Delhi High Court said, “Classification as a class of service providers separate and distinct is recognised in the provisions of the Act. The classification has a rational nexus with the object sought to be achieved.”
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Uber India contested the Center’s order in 2021, arguing that it would boost the prices of automobiles on the app and have a substantial influence on the market. Aside from that, the court has now rejected Uber’s petition in this matter.
According to the logic, after getting these alerts, if an auto-driver registers with an app-based aggregator and provides passenger transportation services to clients through such platforms, 5% or 12% of the fare earned will be subject to 50% GST.
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