E-commerce firm not liable to pay GST on cab service by third parties: AAR

Experts say Karnataka authority's ruling would not apply to Uber, Ola and other cab aggregators

The Karnataka authority for advance rulings (AAR) has held that an e-commerce player without control over drivers and passengers will not pay the goods and services tax (GST) on cab services provided by third parties.

Experts said that the ruling will not apply to cab aggregators Uber and Ola, as the companies have different business models.

Multi-Verse Technologies Pvt Ltd, which is engaged in the business of providing services by way of computer software application services to connect sellers and the buyers, submitted to the AAR that there is no involvement of the company in either arranging the supply of