‘Namma Yatri’ App is Not Liable to Discharge Tax Liability Under Section 9(5) | AAR

Case Details: Authority for Advance Rulings, Karnataka Juspay Technologies (P.) Ltd., In re - [2023] 154 taxmann.com 607 (AAR-KARNATAKA)

Judiciary and Counsel Details

• • Dr M.P. Ravi Prasad & T. Kiran Reddy, Member
  • Chetan Kumar, CA for the Appellant.

Facts of the Case

The applicant was providing computer services through ‘Namma Yatri’ App for facilitating business transactions of supply of services connecting through platform of suppliers i.e. auto drivers and recipients (customers who use auto driver’s service). It filed an application for advance ruling to determine whether it would be treated as e-commerce operator and liable to collect and pay GST on services supplied by auto drivers.

AAR Held

The Authority for Advance Ruling noted that the applicant would merely connect auto driver and passengers and its role shall end on such connection. Further, the applicant would not collect consideration and have no control over actual provision of service by service provider and neither it would take responsibility for operational and completion of ride. Thus, the said supply of services would not be through electronic commerce operator. Therefore, it was held that the applicant would not satisfy conditions of section 9(5) for discharge of tax liability by electronic commerce operator and shall not be liable for discharge of tax liability under section 9(5).