In re Natural Language Technology Research (GST AAR West Bengal)
Summary: In the recent ruling concerning the application submitted by Natural Language Technology Research, the West Bengal Authority for Advance Ruling (AAR) examined whether the “Yatri Sathi Mobile App,” designed to connect passengers with drivers, qualifies as an e-commerce operator under the GST Act. The applicant, a non-profit organization affiliated with the Government of West Bengal, created this app as part of a broader initiative to develop language technologies. The app facilitates ride-hailing services by serving as a platform for customers to connect with drivers, yet the applicant claims it does not engage in the actual provision of transportation services. The central questions addressed include whether the applicant falls under the definition of an e-commerce operator and if it is responsible for collecting GST on services rendered by drivers.
The AAR reviewed the functions of the app, noting that it operates through a dual-system approach, comprising both driver-side and customer-side applications. Drivers pay a subscription fee for access, and the applicant does not intervene in fare-setting or payment collection. This arrangement, according to the applicant, positions it merely as a facilitator rather than a direct supplier of services. The AAR referenced specific provisions of the GST Act to assess whether the applicant meets the criteria for an electronic commerce operator and concluded that the applicant does not supply goods or services but rather enables the connection between drivers and customers. Consequently, the ruling clarifies that the drivers, acting as independent contractors, are responsible for GST on the transportation services they provide, thus absolving the applicant from that obligation.
