GST Invoicing in Case of Online Aggregators like Urban Company, Ola or Uber
To understand the affect of GST on UrbanClap we have to understand what type of business transactions does urbanclap does.
What is Urbanclap?
UrbanClap is a platform to make our urban lives more fulfilling to solve our needs in a clap. Hence the name, UrbanClap.
What Urbanclap does?
They connect the service professionals with potential customers. The service professionals can be anyone like Plumbers, Electricians, Carpenters, Cleaners, Pest Control, Beauticians , Tax Professionals, Home Tutors, Personal Fitness trainers, etc. They act as aggregators.
Who are aggregators?
Aggregators are someone who connects potential customers with service providers through their web-based/mobile-based applications.
Example:-
Cab Aggreagators: Ola, Uber are classic examples of Cab aggreagators. They connect Cab drivers with potential passengers through their Ola/Uber Apps.
The aggregators has to collect two different types of GST.
- GST on the services provided by the service professional to the customer.
- GST on the services provided by the aggregators to service professional and/or customer.
I am taking an example of Cabs as everyone might have used Cab services from Uber/Ola atleast once.
I recently travelled from Kukatally to Banjara Hills by Ola Cabs. For this Ola charged me Rs. 256.
Ola has collected Rs. 256 by issuing two invoices as detailed below.
Renting of Motor Cab.
Taxable Value is Rs. 189.39. [This is for ride fees]
IGST@5% on Taxable Value is Rs. 9.47. [5% is the GST on ride fees]
Total value including Taxes is Rs. 198.86.
Ola Convenience fee.
Ola has charged Convinence fee of Rs. 47.35. This may be for the aggregator services, Ola is providing.
18% GST is collected on Convinece Fee:- Rs. 9.52
Total is Rs. 55.87
The same analogy can be applied to UrbanClap.
Conclusion:-
If you are providing aggregator services like UrbanClap you have to collect GST on the
- services provided by the service professional from the customer and deposit the same to the government.
- services provided by you to the service professional and/or customers and deposit the same with the government.
Hope this answer helped you!
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