Ola, Uber roll out subscription-based plans for auto drivers
Ola and Uber have taken the route first deployed by rivals Namma Yatri and Swiggy-backed Rapido by offering subscription-based plans for auto-rickshaw drivers on their platforms instead of charging a booking fee or commission on every transaction.
Over the last few weeks, Ola has rolled out the subscription model for its auto-rickshaw drivers in some top markets including Delhi-NCR, Mumbai, Bengaluru and Hyderabad, while Uber has launched the same in six cities starting with Chennai, Kochi and Visakhapatnam, a person aware of the matter said.
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Offering CollegeCourseWebsiteIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisitThe move to launch subscription-based plans – where the platforms charge a fixed daily or weekly fee to driver partners on their platforms for an unlimited number of rides – could help Ola and Uber potentially bypass the 5% goods and services tax (GST) applicable on auto-rickshaw rides facilitated by them, people aware of the developments told ET.
Tax experts, however, said this move could lead to potential disputes between the operators and tax authorities with lack of clarity on whether a September 2023 advance tax ruling, which held that Namma Yatri need not collect and pay GST, would apply to other platforms as well.
The 5% GST is applicable under Section 9 (5) of the
