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

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.