The Telangana Gig and Platform Workers Union (TGPWU) on Wednesday, September 11, wrote a letter to the Union government expressing concerns over the applicability of the Goods and Services Tax (GST) on platforms and services mediating mobility, ride-hail, and personal services.
In the letter addressed to Union ministry for corporate affairs, the Chairman of Central Board of Indirect taxes and customs and the Chief Commissioner of Hyderabad, the TGPWU argued that emphasis has to be laid on a clear understanding of business models within the platform economy and their intersection with the Code on Social Security (CoSS).
“As we progress toward better social security provisions for gig and platform workers, it is essential that the taxation system evolves alongside these developments. Our review of the business models provides insights that will be crucial for ensuring that both businesses and workers benefit fairly under the new legal frameworks,” TGPWU founder and president, Shaik Salauddin said.
The TGPWU highlighted how arbitrary criteria pertaining to the modalities of revenue flow within different platform business models affect their relation to GST applicability. “The varying payment models (between different companies like Ola, Zomato, Namma Yatri) come with different tax implications and their own set of burden for workers,” TGPWU said, adding that the implications are further complicated by absence of clear cut standards on how platform revenues can be taxed.
They also stressed on the impact of GST on financing social welfare programs for gig and platform workers and how it was essential to align the new social welfare laws (introduced by Rajasthan and Karnataka state governments) and the existing tax structure to ensure the efficient operation of welfare programmes for gig workers.