The pick-up service is incidental to the main service of transportation of passengers by radio taxi and hence the pick-up charges form part of the service of transportation of passengers by a radio taxi and hence the applicant is liable to pay GST @ 5%, on such pick-up charges.
Classification of service- In the instant case, proposes to operate a mobile based taxi aggregation service, on a pan-India basis under the trade name “DYUT RIDES”. Thus the applicant sought advance ruling in respect of the following questions:
a. Do the various supplies (of the Applicant, the Vehicle Owner, the Driver and the Associate partner together) mentioned supra qualify as 'Composite Supply?
b. Do the pick-up charges paid to the Owner/ Driver fall under GST rate of 5%?
c. Do the service charges collected from the passengers fall under GST rate of 5%?
In this connection a reference may be made to Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017 - Sl. No. 8.
d. The Associate Partner renders services to the Passengers and to the Drivers/ Vehicle Owners directly, and in that case does any supply of service exist between the Applicant/ Aggregator and the Associate Partner, and if yes, what is the rate at which GST has to be collected and remitted? It may be noted that the Associate Partner is paid up to 10ps per transaction as explained in the above said example.
e. Does the amount received from the Owners / Drivers towards bidding get covered in the 5% GST or should it be separately charged at 18%? It may be noted that to participate in the bid, the drivers have to pay to the Applicant @ 30ps per bid and GST.
f. Does the Goodwill Bonus being paid by Passenger to the Driver for good service and on which the Applicant collects the service charges, attract GST and if so at what rate?
g. Do the charges for cancelling the trip for any reason attract GST liability?
h. Do the charges for insurance come under composite supply?
i. If the Principal supplier/ Applicant collects GST, say at 5% along with fare from Passengers (please see table above) and remits that amount, does it amount to compliance of the GST rules?
Held that-
1. The various supplies of the applicant, the vehicle owner, the driver and the associate partner together is not a composite supply.
2. The pick-up service is incidental to the main service of transportation of passengers by radio taxi and hence the pick-up charges form part of the service of transportation of passengers by a radio taxi and hence the applicant is liable to pay GST @ 5%, on such pick-up charges.
3. 18 % is applicable in case the associate partner is registered under GST. Where the associate partners are not registered under GST, no GST is leviable on the amount remitted to the associate partner.
4. The amount received from drivers/ owners towards bidding should be separately charged at 18%
5. The goodwill bonus being paid by passenger to the driver and on which the applicant collects the service charges, attract GST @18%
6. The charges for cancelling the trip for any reason attract GST @18%
7. The charges for insurance does not come under composite supply
The pick-up service is incidental to the main service of transportation of passengers by radio taxi and hence the pick-up charges form part of the service of transportation of passengers by a radio taxi and hence the applicant is liable to pay GST @ 5%, on such pick-up charges.
Classification of service- In the instant case, proposes to operate a mobile based taxi aggregation service, on a pan-India basis under the trade name “DYUT RIDES”. Thus the applicant sought advance ruling in respect of the following questions:
a. Do the various supplies (of the Applicant, the Vehicle Owner, the Driver and the Associate partner together) mentioned supra qualify as 'Composite Supply?
b. Do the pick-up charges paid to the Owner/ Driver fall under GST rate of 5%?
c. Do the service charges collected from the passengers fall under GST rate of 5%?
In this connection a reference may be made to Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017 - Sl. No. 8.
d. The Associate Partner renders services to the Passengers and to the Drivers/ Vehicle Owners directly, and in that case does any supply of service exist between the Applicant/ Aggregator and the Associate Partner, and if yes, what is the rate at which GST has to be collected and remitted? It may be noted that the Associate Partner is paid up to 10ps per transaction as explained in the above said example.
e. Does the amount received from the Owners / Drivers towards bidding get covered in the 5% GST or should it be separately charged at 18%? It may be noted that to participate in the bid, the drivers have to pay to the Applicant @ 30ps per bid and GST.
f. Does the Goodwill Bonus being paid by Passenger to the Driver for good service and on which the Applicant collects the service charges, attract GST and if so at what rate?
g. Do the charges for cancelling the trip for any reason attract GST liability?
h. Do the charges for insurance come under composite supply?
i. If the Principal supplier/ Applicant collects GST, say at 5% along with fare from Passengers (please see table above) and remits that amount, does it amount to compliance of the GST rules?
Held that-
1. The various supplies of the applicant, the vehicle owner, the driver and the associate partner together is not a composite supply.
2. The pick-up service is incidental to the main service of transportation of passengers by radio taxi and hence the pick-up charges form part of the service of transportation of passengers by a radio taxi and hence the applicant is liable to pay GST @ 5%, on such pick-up charges.
3. 18 % is applicable in case the associate partner is registered under GST. Where the associate partners are not registered under GST, no GST is leviable on the amount remitted to the associate partner.
4. The amount received from drivers/ owners towards bidding should be separately charged at 18%
5. The goodwill bonus being paid by passenger to the driver and on which the applicant collects the service charges, attract GST @18%
6. The charges for cancelling the trip for any reason attract GST @18%
7. The charges for insurance does not come under composite supply