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  Business   Economy  20 May 2017  Ola, Uber rides could get cheaper under GST

Ola, Uber rides could get cheaper under GST

PTI
Published : May 20, 2017, 11:11 am IST
Updated : May 20, 2017, 11:11 am IST

At present, a service tax of 6 per cent is levied on rides booked through cab aggregators like Ola and Uber.

Ola is a local player in taxi aggregator industry.
 Ola is a local player in taxi aggregator industry.

New Delhi: Cab rides could get marginally cheaper for customers from July 1 as the incidence of tax will come down to five per cent for bookings made on cab
aggregators like Ola and Uber.

Currently, a tax of six per cent is levied on rides booked through cab aggregators. "Such reduction is a welcome move for cab aggregators and
consumers considering the increased demand of services of cab aggregators," Deloitte Haskins & Sells Senior Director Saloni Roy said.

It shall accordingly provide a further boost to the already thriving operations of cab aggregators, she added. The introduction of services by cab aggregators has seen manifold growth due to the ease and reasonableness of prices at which the services are offered.

"The GST rate on cab aggregators is proposed to be at 5 per cent as compared to the current abated service tax rate of 6 per cent. This is the rate closest in the various bands of GST rates of 5, 12, 18 and 28 per cent," Roy said.

Amit Jain, President of Uber India and South Asia also welcomed the move.
"By ensuring that the new rate structure is not inflationary, the government has demonstrated its pro-consumer, pro-business stance," he said.

Ola did not respond to emailed queries.

Tags: gst, gst council, ola, uber, taxi aggregator, ola uber ride, goods and services tax, srinagar, anti-profiteering clause, input tax credit, india inc, companies, inflation, price rise, arun jaitley, haseeb drabu
Location: India, Delhi, New Delhi