They will also stop taking commissions from auto rickshaws.
Instead, they will take daily/weekly subscription fees.
(Online payment means ola money/uber money/rapido coins/credit card/amazon pay. You can still pay using UPI after the ride ends. If the driver doesn’t use UPI, start running)
And most importantly, they won’t set prices. Rickshaw drivers can charge whatever they want.
Amazing, right? 🙂🙂
Namma Yatri started this amazing concept.
They saw that rickshaw drivers didn’t want to pay commissions for every ride on Uber/Ola.
So they started charging Rs 25 per day.
Drivers happy. People happy.
And Namma Yatri happy.
By charging fixed fees instead of commissions, they escaped the 5% GST that Uber Ola Rapido were paying.
How?
Because on 15th September last year, the Karnataka Authority for Advance Rulings said that CGST Section 9(5) is not applicable to Namma Yatri.
Namma Yatri is only connecting customers with rickshaws.
They are not providing the service.
Namma Yatri is not driving the rickshaw. Namma Yatri is not setting the prices. Namma Yatri is not collecting the payments.
So they don’t have to pay 5% GST.
Rapido copied this idea in February. And now Ola Uber have also copied it.
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This post was originally shared by Shreyans Singh on Linkedin.