UBER filed petition with Delhi HC to challenge GST applicability on Auto Rickshaw services

Uber, the e-commerce platform, has filed a case in the Delhi High Court challenging the imposition of GST on Auto Rickshaw services booked through the e-commerce platform.

Mr. Arvind Data, counsel for the Petitioner, states that Notification No. 16/2021 and Notification No. 17 / 2021 amended the parent notifications, namely Notification No. 12/2017 and Notification No. 17/2017, in order to levy GST on the supply of passenger transportation via a ‘electronic commerce operator’ and provided by an auto-rickshaw. He goes on to say that the contested notifications will go into effect on January 1, 2022, and that if an auto-driver registers with an e-commerce operator like the Petitioner and provides transportation of passenger services to passengers identified through such e-commerce platform, GST at 5% or 12% will become applicable on the fare collected on such passenger transport services via auto-rickshaws, even if an auto ride is taken through offline modes.

Mr. Data stated that the contested notifications violate Article 14 of the Indian Constitution because they fail to meet the requirement of reasonable classification. He claims that no distinction in tax treatment can be made between passenger transport services provided by auto drivers via e-commerce platforms and passenger transport services provided by auto drivers offline.

The notice was issued to the government by a division bench of Justice Monamohan and Justice Navin Chawla.

To Read the Judgment Download PDF Given Below :