App-based ride firms seek GST exemption, cite unfair tax burden

App-based mobility companies have called for a GST exemption, arguing that the five percent tax is applied unfairly to their platforms. Industry representatives contend that drivers typically collect fares directly from passengers rather than through the app, making the technology connector the primary tax target.

The industry body stated that this tax burden adversely affects both drivers and passengers. Conflicting rulings across states have compounded uncertainty in the sector, prompting the push for clarity and relief from the current GST levy.