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.”
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.
