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What is ride-sourcing?
Ride-sourcing is an ongoing arrangement where a third-party facilitator provides a technology platform to facilitate a transaction between a driver and a passenger. The arrangements can be enabled by website or mobile device application that make a driver’s car available to transport the passenger for payment with a view to make profit.
GST consequences in providing ride-sourcing services
Ride-sourcing services are treated as taxi travel services under GST law and you are required to be registered for GST if you carry on an enterprise and provide taxi travel services. An enterprise is an activity done in a form of business where you provide invoices to your customers.
As a driver if you offer taxi travel, you must register for GST, charges GST on the full fare, lodge business activity statements and report the income in your tax returns.
However, you can claim the GST credits on your business purchases in apportion between your business and private use. You can also claim a proportion of GST credits for other business purchases you make.