GST on subscription ride-hailing platforms could dent driver earnings, warns Esya report
An Esya Centre report says extending GST liability under Section 9(5) to subscription-based platforms like Rapido and Bharat Taxi may cut driver earnings, curb participation and reduce passenger demand. A survey of 2,100 drivers across 13 cities found 90% could be affected, with two-thirds of passengers likely to pull back.
An Esya Centre report warns that extending GST liability under Section 9(5) to subscription-based ride-hailing platforms like Rapido and Bharat Taxi could cut driver earnings, curb participation and reduce passenger demand, urging clearer tax classification.
Why this matters
The GST warning lands as Rapido expands aggressively, rolling out Ownly city-wide in Bengaluru with zero-commission food delivery and raising funds at a $3B valuation with Prosus doubling down.
Retail-company signals accelerating at +497700% QoQ.