GST on Passenger Transport — Cab Aggregators, Auto Rickshaws and Buses

GST on passenger transport services depends on the mode of transport, whether it's metered or non-metered, and whether it's through an electronic commerce operator (ECO). The rules are different for auto-rickshaws, metered taxis, radio taxis, app-based cab aggregators and buses. Here is the complete guide.

GST on Different Modes of Passenger Transport

• Auto-rickshaw (offline): Fully exempt from GST — whether hired on the road or through a booking office (not through an app/ECO)
• Metered taxi (offline): Fully exempt from GST — traditional metered yellow/black taxis booked directly
• Stage carriage (government and private buses — non-AC): Exempt from GST
• Non-AC contract carriage (charter buses): GST at 5% (no ITC)
• AC contract carriage: GST at 5% (no ITC)
• Air transport (economy class): GST at 5%; Business class: 12%
• Rail transport (sleeper class): Exempt; AC classes: 5%

App-Based Cab Aggregators (Ola, Uber, Rapido) — Section 9(5) RCM

When a cab service is booked through an Electronic Commerce Operator (ECO) like Ola or Uber, special rules apply:

• Non-AC cab (economy): Previously exempt — but where aggregator provides the service, GST at 5% applies and is paid by the aggregator platform (not the driver) under Section 9(5)
• AC cab (premium): GST at 5% — collected by the ECO
• The driver does not charge GST — the app (ECO) is the deemed supplier and collects 5% GST on the full fare
• No ITC available to the ECO on this supply (5% without credit)
• Auto-rickshaw booked through Ola/Rapido: Exempt — notification specifically exempts this

Corporate Cab Services (B2B)

• A corporate booking a cab service from a registered transport company: GST at 5% (no ITC) charged by the transport company
• If the transport company is unregistered — RCM may apply if notified
• ITC on cab hire for employee transport: Blocked (Section 17(5)) — unless the company is in the business of passenger transport

Conclusion

GST on passenger transport is a patchwork of exemptions and 5% rates — with the Section 9(5) ECO liability mechanism making app aggregators the tax payers for cab services. SPOTON provides GST advisory for transport companies, cab operators and corporate clients managing passenger transport ITC in Kerala. Contact us for expert GST compliance services.