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Ola, Uber rides could get cheaper under GST

Press Trust of India  |  New Delhi 

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

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

Amit Jain, President of Uber 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 Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 19 2017. 20:57 IST