The Delhi High Court Has Upheld GST Notifications For Ola And Uber Bookings Of Auto Rickshaws

Uber argued that the government was not planning to impose any such tax on auto rides through offline modes like street hailing and, therefore, the notifications were in violation of Article 14 of the Constitution. It contended that the government's directives failed to satisfy the test of reasonable classification, and no differentiation in tax treatment could be created between passenger transport services rendered by auto drivers facilitated through mobile platforms and those rendered by auto drivers offline.

However, the court rejected Uber's argument and upheld the government's notifications, stating that they did not violate fundamental rights. The court reasoned that the classification of e-commerce operators was recognized in the provisions of the Act, and it had a rational nexus with the object sought to be achieved.

In conclusion, the Delhi High Court has upheld the government's notifications imposing GST on auto-rickshaws booked through app-based aggregators, dismissing Uber India's plea that the notifications were in violation of Article 14 of the Constitution. The court's decision is likely to have a significant impact on the taxation of app-based transportation services in India.