The imposition of 5% GST on non-AC auto-rickshaw or bus rides bought online on platforms such as Ola, Uber, MakeMyTrip and redBus is seeing price-sensitive consumers shifting offline to save tax, industry executives said. The proportion of such transactions fell from 41% of the total online bookings of bus tickets in the fourth quarter of 2021 to 22% in the three months ended, three executives said, requesting anonymity. “The imposition of GST bus tickets purchased though ECOs in a way dissuades consumers from using online systems, something against the government’s Digital India mission,” he said. “The large-hearted intent of the GST council to exempt non-AC bus fares from GST levy was to give relief to the poor and bottom of the pyramid that largely use such a service. “Digital penetration in transport system is deeply affected by non-uniform GST policy implementation, where the online platforms are mandated to charge a 5% GST and offline modes have no GST charges,” one of the expert said.

Source: Hindustan Times January 15, 2024 04:55 UTC