IAMAI wants 5% GST dropped for app-based rides

New Delhi: The app-based mobility industry has pitched for exemption from the 5% goods and services tax (GST), arguing that the levy is being imposed on platforms that often do not collect fares from passengers.

In a representation to the government and the Goods and Services Tax Council, the Internet and Mobile Association of India (IAMAI) said the current tax structure does not reflect how several ride-hailing platforms actually operate.

On these platforms, a driver collects the fare directly from the passenger and the app acts primarily as a technology platform connecting the two, it said. Yet, the industry body said the platform is required to account for the 5% GST on the value of the ride.