Upset Uber asks taxman why it pays GST but Namma Yatri doesn’t

Pranav Balakrishnan

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Pranav Balakrishnan

12 reads

With rides on the platform surging 35X in the past six months, Namma Yatri is chasing down ride-hailing aggregators Ola, Uber, and Rapido. Its rivals, however, claim the platform has an unfair advantage as it doesn’t pay GST on rides.

July 10, 2023

7 MINS READ

Key Takeaways

Zero-commission auto-hailing platform Namma Yatri has seen its rides increase 35X in the last six months
This traction has attracted increased scrutiny, with rivals complaining the platform should be paying GST on rides but isn’t doing so
Tax officials have also gotten involved, speaking with key people linked with Namma Yatri to understand whether or not GST applies to rides hailed on the platform
While lawyers appear to side with Namma Yatri in this matter, rivals point to precedents and the language of India’s GST rules to argue otherwise

Namma Yatri, an auto-hailing app powered by the government’s interoperable e-commerce network ONDC, has taken Bengaluru’s ride-hailing space by storm. In the past six months, rides on the platform have surged almost 35X—from 2,000 per day to close to 70,000—and are growing 100% month-on-month.

With great traction, though, has come increased scrutiny. The CapTable has learned that tax officials have spoken with senior executives associated with Namma Yatri, asking them why the platform doesn’t pay GST (goods and services tax) for rides hailed through the app. Karnataka’s rules stipulate that online ride-hailing fares for autos include the base fare, a 10% convenience fee, and 5% of the fare as GST.