GST @5% liable on pick-up charges paid to the owner / driver

THE AUTHORITY FOR ADVANCE RULING
IN KARNATAKA

The Question and Rulings as follows :

1. Do the various supplies (of the applicant, the vehicle owner, the driver and the associate partner together) qualify as Composite Supply?

No, it’s not a Composite Supply.

2. Do the pick up charges paid to the owner/driver fall under GST rate of 5%?

Yes, 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. 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?

18% by associate partners 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. Does the amount received from drivers/ owners towards bidding get covered in the 5% GST or should it be separately charged at 18%?

It should be paid at 18%.

5. Does the goodwill bonus being paid by passenger to the driver and on which the applicant collects the service charges, attract GST and if so at what rate?

Yes at 18%.

6. Do the changes for cancelling the trip foe any reason attract GST liability?

Yes at 18%.

7. Do the changes for insurance come under composite supply?

No.

8. If the principal supplier/ applicant collects GST, say at 5% along with fare from passengers (as mentioned in the Table submitted by the applicant), does it amount compliance of the GST Rules?

No. the applicant needs to discharge 18% on its other income as discussed above.