Cab Rides To Get Cheaper Under GST

The tax for bookings made on cab aggregators such as Ola and Uber is likely to reduce by five percent under GST. Currently, a six percent tax is levied on cab rides booked through such cab aggregators.

The services introduced by cab aggregators has seen a rapid growth in the country. The ease of use and reasonable prices are the key factors for such growth.

Deloitte Haskins and Sells Senior Director, Saloni Roy said, "Such reduction is a welcome move for cab aggregators and consumers considering the increased demand for services of cab aggregators."

President of Uber India and South Asia, Amit Jain welcomed the move. Jain said, "The GST rate on cab aggregators is proposed to be at 5 percent as compared to the current abated service tax rate of 6 percent. This is the rate closest in the various bands of GST rates of 5, 12, 18 and 28 percent."

He added, "By ensuring that the new rate structure is not inflationary, the government has demonstrated its pro- consumer, pro-business stance. But Ola did not respond to the new taxation policy.