Yulu Bikes, which runs an eponymous two-wheeler shared mobility platform, has announced slashing of GST (goods and services tax) rates from 18% to 5%, making rides on its platform more affordable for end-users.
Bengaluru headquartered Yulu said in a statement that GST rate cut is as per ruling from the Karnataka Appellate Authority of Advance Ruling (AAAR) on Jan 13, 2021.
The Karnataka AAAR held that Yulu’s renting services, in accordance with amendment Notification No. 20/2019-CTR, should be classified under SAC 9973 (Leasing services without operator) and hence can lower rates on its services to 5% from previous 18% for its e-bikes ‘Miracles’ and 12% on Pedal bikes ‘Move’.
“With the reduction in taxation, Yulu services will now become more affordable and hassle-free for short commute, first-mile & last-mile connectivity,” Amit Gupta, CEO and co-founder of Yulu said.
Anuj Tewari, CFO of Yulu, said that the decision to reduce e-bike taxes is in line with our Prime Minister’s vision of a sustainable environment through the widespread use of electric vehicles which reduces congestion and pollution.
Founded in 2017 by Gupta, RK Mishra, Naveen Dachuri and Hemant Gupta, Yulu raised $4 million from Rocketship.vc in June 2020.
Yulu claims to have raised over $20 million in total funding from investors including two-wheeler maker Bajaj Auto and venture capital firm Blume Ventures, 3one4 Capital and Wavemaker.
The electric vehicle (EV) platform, offers bicycles and electric scooters with a maximum speed of 25 kilometres per hour. It uses technology such as internet-of-things (IoT), machine learning (ML), and artificial intelligence (AI) for demand-supply management and efficient operations.