GST impact: Airlines, cab aggregators grapple with higher lease payouts

Ola and Uber, as well as its drivers, are facing almost double the taxes on leasing under the GST

Under the new indirect tax regime, leasing of goods is regarded as a service and attracts the goods and services tax (GST). This has created complexities for airlines, cab aggregators and cab leasing companies, even as they grapple with teething issues of implementation of the GST.

Among the many issues faced by airlines, the anomaly in terms of input tax credit for economy class and dual taxation on aircraft leasing top the list. According to the rules, while input credit arising from procurement of both goods and services can be used in case of business class, input credit from