Indian gig workers who offer mobility services deserve GST relief

Subscribe to enjoy similar stories. The Union Budget for 2024-25 rightly focused on promoting inclusive growth and enabling employment-led development in India. With a goal of assisting the poor and vulnerable groups, finance minister Nirmala Sitharaman proposed a scheme for the socioeconomic upliftment of Indian workers as the government tries to help them raise their incomes and attain sustainable livelihoods for a better quality of life.

The number of gig workers in India are growing, whether they are drivers of autorickshaws, taxis or bikes, or those engaged in the delivery of food or groceries, or others working for e-commerce companies. The surge in job opportunities for gig-workers across sectors has led to an increase in government initiatives for their welfare. Governments, both at the Centre and in states, are racing to formulate policies for the proper regulation of gig workers, mostly in terms of their economic betterment—by facilitating increased employment opportunities for them.

For example, the ministry of labour and employment has created the e-Shram portal for the registration of gig-workers. As of 19 December 2024, as many as 304,802,313 individuals were registered on the portal. In her budget speech, the finance minister announced that gig workers registered on the e-Shram portal will be provided healthcare coverage under the Pradhan Mantri Jan Arogya Yojana, a move that is likely to benefit nearly 10 million gig-workers.

A large proportion of such workers are ‘mobility gig workers,’ for whom mobility aggregator platforms have created self-employment and earning opportunities in huge numbers over the past decade or more. This group includes drivers of autorickshaws, cars and two-wheelers. Income