TMI Blog2018 (8) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... oubt that the services of transportation of passengers is supplied to the consumers through the applicant and by virtue of this provision, it shall be deemed that the applicant would be deemed to be the supplier liable to pay tax in relation to the supply of such service by the taxi operator. Ruling:- The applicant is liable to tax on the amounts billed by him on behalf of the taxi operators for the service provided in the nature of transportation of passengers through it, in accordance with the provisions of sub-section (5) of section 9 of the Central Goods and Services Tax Act 2017. - Advance Ruling No. KAR ADRG 14/ 2018 - - - Dated:- 27-7-2018 - Sri. Harish Dharnia, Joint Commissioner of Central Tax, Member (Central Tax) And Dr. Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r usage of IT services which he would have provided from his end. i.e. Mobile App and Billing related services. Customers pay directly to the drivers, whose turnover may not be more than ₹ 12 Lakhs per annum and the applicant is of the opinion that he may not be required GST to be levied on the trip amount. c. The applicant seeks clarity on GST collection for him to implement their invoicing process of each trip. He also undertakes that he would collect and pay to the Government any taxes on the amounts that would be collected by him. He feels that the taxes applicable would be payable by the drivers and users and not to be collected and paid by him as the amount is not routed through him. He also feels that as the threshold of tur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumer to the taxi operator on which he proposes to have no control over the payment. The consumer would book the taxi on his application and the taxi operator would be intimated about the potential customer and on usage, he would be billed by the applicant on behalf of the taxi operator. 4.2 The business model of the applicant is verified and found that he is liable to pay taxes on the services provided to the taxi operators and the applicant company has no dispute in admitting his liability on the monthly usage charges charged on the taxi operators for using the application and is also not a matter before this Authority. 4.3 The services is provided by the taxi operator and the amount is collected from the customer by him and the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses. There is no doubt that the services of transportation of passengers is supplied to the consumers through the applicant and by virtue of this provision, it shall be deemed that the applicant would be deemed to be the supplier liable to pay tax in relation to the supply of such service by the taxi operator. 5. In view of the foregoing, we rule as follows RULING The applicant is liable to tax on the amounts billed by him on behalf of the taxi operators for the service provided in the nature of transportation of passengers through it, in accordance with the provisions of sub-section (5) of section 9 of the Central Goods and Services Tax Act 2017 read with Notification No. 17/2017 Central Tax (Rate) dated 28.06.2017 and the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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