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Karnataka fixes extra 5% plus GST for auto services run by ride-hailing apps

Mangalore Today News Network

Bengaluru, Nov 26, 2022: Karnataka’s department of transport and road safety fixed a 5 per cent service charge plus Goods and Services Tax (GST) on Friday for autorickshaw services offered by ride-hailing apps.

The government allowed the app-based aggregators to charge the minimum fare of Rs 30 for the first 2km, a 5 per cent service charge and GST for their autorickshaw services.



According to a senior official, the department filed an objection in the Karnataka High Court on November 16 to the ride-hailing apps’ proposal to increase the service charge for their autorickshaw services.

In their proposal, representatives of Ola and Uber submitted that they be allowed to enable dynamic pricing by levying a 25 per cent service charge. Ola wanted to double the base fare from Rs 30 to Rs 60 on rainy days and increase the platform fee.

In October, the court asked the stakeholders to hold meetings and decide on the overall fare fixation for autorickshaw services offered by ride-hailing apps.

It also provided an interim relief to the ride-hailing apps after the government decided to ban their autorickshaw services. The apps were then allowed to charge 10 per cent extra plus GST for the autorickshaw services.

Courtesy: Indian Express

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