GST for Online Aggregators (Section 9(5)) — Ola, Uber, Urban Company
When services are supplied through online aggregators / e-commerce operators (ECOs) like Ola, Uber, Urban Company or food-delivery platforms, GST has special rules under Section 9(5) that shift the tax liability to the platform for certain notified services. This changes who invoices and pays GST. This guide explains it.
Section 9(5) — the platform pays GST
For certain notified services supplied through an ECO, the e-commerce operator is made liable to pay GST as if it were the supplier — instead of the individual service provider. Notified categories have included passenger transport (cab aggregators), accommodation booked through platforms below a threshold, housekeeping (e.g., plumbing/carpentry via platforms), and restaurant services supplied through food-delivery apps.
What this means for invoicing
- For 9(5) services, the ECO charges and pays GST to the government and issues the tax invoice to the customer for that supply.
- The underlying supplier (driver, small restaurant, service professional) does not charge GST on those specific supplies — the platform handles it.
- Because the platform discharges GST, a small provider may not need GST registration solely for these 9(5) supplies (subject to the current rules and other supplies they make).
ECO’s other GST duties
Separately, e-commerce operators generally must collect TCS (tax collected at source) on the net value of taxable supplies made through them by other registered suppliers (for supplies not covered by 9(5)), and file the related returns. So an ECO may deal with both 9(5) liability and TCS depending on the supply.
Frequently asked questions
Who pays GST on Ola/Uber or Urban Company services?
For notified services under Section 9(5), the platform (ECO) pays the GST, not the individual driver or professional.
Does a small restaurant on a food app charge GST itself?
For supplies covered by 9(5) through the app, the platform discharges the GST on those restaurant supplies.
What is TCS for e-commerce operators?
ECOs collect TCS on the net taxable supplies made through them by registered sellers (for supplies not under 9(5)) and remit it to the government.
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Related guides: GST registration · GST returns · GST for freelancers
