The Division Bench of Justice Manmohan and Justice Manmeet Pritam Singh Arora passed the order on Wednesday, stating that the petitioners are not entitled to the reliefs as sought in the writ petitions.

Uber India Systems Private Limited argued in its submissions that the imposition of GST on autorickshaw rides booked through their platform could lead to financial implications, causing customers to opt for other modes of transportation. Moreover, it could jeopardize the financial autonomy of the drivers, leading to a loss of livelihood for the registered driver partners of the petitioner. The respondents, on the other hand, contended that ECOs (Electronic Commerce Operators) are liable to pay tax on the supplies made through them by other suppliers under a notification issued under Section 9(5) of the Act of 2017.

The government argued that taxing transportation services supplied through ECOs does not violate Article 14 of the Constitution, as equality must be maintained amongst equals. They also stated that transporters supplying services through ECOs are not equal to those supplying their services without ECO involvement. Vendors supplying services through ECOs benefit from the IT infrastructure, logistics capacity, and other resources of ECOs.

The court's decision to dismiss the petitions means that ECOs must pay tax on the supplies made through them. It also means that customers booking autorickshaw rides through ride-sharing applications may have to pay more due to the GST imposition.