Shaik Salauddin, Founder President of Telangana Gig and Platform Workers Union (TGPWU), informed Radiance that TGPWU has submitted a detailed formal letter to government authorities, addressing the growing concerns regarding the applicability of GST to platforms and services that mediate mobility, ride-hailing, and personal services. This significant move comes in the wake of recent legislative developments, such as the introduction of social welfare provisions for gig and platform workers in Rajasthan and ongoing policy discussions in Karnataka.
The submission was directed to key government officials, including Minister of Finance and Corporate Affairs, Chairman of Central Board of Indirect Taxes and Customs, and Chief Commissioner of Hyderabad GST and Customs. The letter emphasizes urgent need for a comprehensive understanding of diverse business models within the platform economy and how they intersect with the Code on Social Security (CoSS). The TGPWU’s submission aims to clarify how GST impacts these business models and the broader implications for the welfare of gig workers.
The letter reviews various platform business models, such as commission-based and rate card structures, and their modalities of revenue flow. It underscores how these revenue streams directly impact the applicability of GST, urging authorities to consider the unique financial dynamics of these models.
The submission brings attention to the critical role GST plays in financing social welfare programs for gig and platform workers. It emphasizes that the current tax framework must adapt to ensure these workers receive adequate support without overburdening the platforms that employ them.
The TGPWU stresses the need for a cohesive approach that aligns new social welfare laws with the existing tax structure, facilitating smooth operation of welfare programs for gig workers and preventing any legal or financial discrepancies that could hinder their effectiveness.
