Delhi High Could Issues Notice On Uber's Plea Challenging Notifications Levying GST On Auto Rikshaw Services Booked Through E Commerce Operator

The Delhi High Court has issued notice on a petition moved by Uber India challenging the two notifications levying GST on auto rickshaw services booked through e commerce platform as being arbitrary and ultra vires 14, 19(1)(g) and 21 of the Constitution of India.  

The petition states that while the GST will be applicable on the fare collected on auto rickshaws booked through an e commerce operator, auto rides through offline modes will remain exempted. The Impugned Notifications will come into effect from 1st January, 2022.

A bench comprising of Justice Manmohan and Justice Navin Chawla issued notice on the plea which challenges the two notifications dated dated 18th November, 2021 which had modified the earlier notifications of 2017 in order to levy GST on the supply of transportation of passenger service, through an electronic commerce operator, provided by an auto rickshaw.

Senior Advocate Arvind Datar appearing for the petitioner submitted that if an auto driver registers itself with an e- commerce platform like Uber for providing transportation of passenger services to passengers identified through such e-commerce platform, a GST at the rate of 5% or 12% will be applicable on the fare collected on such passenger transport services through auto rickshaws, even though an auto ride through offline modes like street hailing will remain exempted.

Arguing that the impugned notifications are violative of Art. 14 as they fail to satisfy the test of reasonable classification, it has further been submitted that no differentiation in tax treatment can be created between passenger transport services rendered by auto drivers facilitated through e-commerce platforms and those rendered by auto drivers offline.

The matter will now be heard on December 21, 2021.

Title: UBER INDIA SYSTEMS PRIVATE LIMITED v. UNION OF INDIA & ANR.

Click Here To Read Order