UBER challenges levy of GST on the supply of transportation of passenger service, through an 'electronic commerce operator', and provided by an auto rickshaw.
Notification No. 16/2021 –CT Rate — E Commerce operator – The Petitioner challenged clause (iv) of the Notification No. 16/2021- Central Tax (Rate) dated 18th November, 2021 and clause 1(i) and clause 2(i) of Notification No. 17/2021 - Central Tax (Rate) dated 18th November, 2021 as ultra vires the Constitution of India being unreasonable, arbitrary and violative of Articles 14, 19(1)(g) and 21 of the Constitution of India. The counsel for the Petitioner submitted that Notification No. 16/2021 and Notification No. 17/2021 have made amendments to the parent notifications i.e. Notification No. 12/2017 and Notification No. 17/2017 in order to levy GST on the supply of transportation of passenger service, through an 'electronic commerce operator', and provided by an auto rickshaw. The Impugned Notifications will compel auto-driver to registers itself with an e-commerce operator and GST at 5% or 12% will become applicable on the fare collected on such passenger transport services through auto rickshaws, even though an auto ride through offline modes like street hailing of auto will still be exempt.
Held that:- The Hon’ble High Court issued notice and re-notified on 21st December, 2021.
UBER challenges levy of GST on the supply of transportation of passenger service, through an 'electronic commerce operator', and provided by an auto rickshaw.
Notification No. 16/2021 –CT Rate — E Commerce operator – The Petitioner challenged clause (iv) of the Notification No. 16/2021- Central Tax (Rate) dated 18th November, 2021 and clause 1(i) and clause 2(i) of Notification No. 17/2021 - Central Tax (Rate) dated 18th November, 2021 as ultra vires the Constitution of India being unreasonable, arbitrary and violative of Articles 14, 19(1)(g) and 21 of the Constitution of India. The counsel for the Petitioner submitted that Notification No. 16/2021 and Notification No. 17/2021 have made amendments to the parent notifications i.e. Notification No. 12/2017 and Notification No. 17/2017 in order to levy GST on the supply of transportation of passenger service, through an 'electronic commerce operator', and provided by an auto rickshaw. The Impugned Notifications will compel auto-driver to registers itself with an e-commerce operator and GST at 5% or 12% will become applicable on the fare collected on such passenger transport services through auto rickshaws, even though an auto ride through offline modes like street hailing of auto will still be exempt.
Held that:- The Hon’ble High Court issued notice and re-notified on 21st December, 2021.