NDTV Profit

Ola, Uber Rides Could Get Cheaper Under GST

"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.
EMAIL
COMMENTS
Currently, a tax of 6 per cent is levied on rides booked through cab aggregators.
Currently, a tax of 6 per cent is levied on rides booked through cab aggregators.
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.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

For latest news on Business, like us on Facebook and follow us on Twitter.
ALSO READ RBI Chief Urjit Patel Calls On Arun Jaitley Before Policy Review

Advertisement

Advertisement

GAINERS / LOSERS