<ul data-eligibleForWebStory="true"><li>Ride-hailing platforms like Ola, Uber, and Rapido are seeking clarity on GST for their SaaS model from the CBIC following conflicting rulings from the Karnataka AAR.</li><li>The ride-hailing firms will approach the CBIC due to allegations that the Karnataka AAR's decision is distorting competitive parity in the sector.</li><li>These platforms have shifted to a subscription-based model to minimize GST liability, where drivers pay a fixed platform fee instead of ride commissions.</li><li>Ola recently launched a SaaS-based zero commission model for cab drivers, allowing them to retain 100% of their earnings by subscribing to a daily or monthly pass.</li><li>Rivals like Rapido and Namma Yatri had already introduced similar SaaS models for their auto drivers last year.</li><li>While some SaaS platforms have been exempted from GST by the Karnataka AAR, others are deemed liable, creating inconsistency and challenges.</li><li>Uber challenged this inconsistency arguing it leads to unfair competition and ambiguity in tax law interpretation.</li></ul>

Ola, Uber, Rapido To Seek GST Clarity On Their SaaS Model: Report

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