GST Effect | Travel by Ola & Uber in India to Now Cost Less & Here’s by How Much

Travelling by Ola and Uber will now become cheaper, thanks to the introduction of GST (Goods & Services Tax) in India. Though you can’t be on the roads throughout the day travelling here and there by Ola or Uber, but yes, frequent and loyal Ola, Uber clients will definitely be happy next time they book a cab.

How Ola and Uber rides become cheaper?

As per Goods & Services Tax (GST), that was rolled out on July 1, 2017, the transport services will now be taxed at 5 per cent. This new tax limit will lead to a small drop, 1 per cent, in the regular cab fares. Currently, cab aggregators — Ola and Uber, pay 6 per cent levied tax which will reduce to 5 per cent after the implementation of GST. Well, passing the same benefit on to the consumers of Ola and Uber who regularly book the cabs for local commutation within the cities has made the cab rides all the more cheaper now.

Benefits of  Tax Reduction on Transport Services

Transport services have been kept in the lowest bracket of GST which is 5 per cent for the following cited reasons:

  • Cheaper cab rates of Ola and Uber will encourage people to travel by cabs
  • Services will become more convenient and accessible
  • Boost in transport services would eventually reduce traffic congestion on roads
  • More people using transport services like Ola and Uber will cut down the carbon content in the air leading to less air pollution
  • Greater savings in transportation cost due to reduction in cab fares

Ola has already communicated to its users the slash in cab prices via messages while Uber India too passes on a similar notification regarding difference in prices to its consumers post GST incorporation into these transport services.

The Ugly Side of GST 

Where we see the good impact of GST on the transport services offered by the big shots Ola and Uber, there is a an ugly side to its impact on them too.

  • Cab aggregators both Ola and Uber have raised concerns over the rise in leasing rentals
  • Earlier levied tax of 14.5 percent as imposed on leasing of cars  is now between 29 per cent to 43 per cent
  • The wide range of GST adopted solely depends from car to car
  • Ola and Uber drivers get a hit from the manifold increase in the amount of new tax under GST levied
  • Some of them are driven to this extent to drop their current occupation post GST introduction on lease rentals

Ride charges for Ola, Uber ?

Ola and Uber both have almost a similar fee structure with a minute variation. Both the cabs have base fare, distance fare, wait time fare, ride time fare and cancellation fee. All the fares solely depend on the category of vehicle selected. Both the cab services of Ola and Uber offer a comfortable ride without any driving fuss this time with a lesser fare to be paid for your ride due to GST.

Wait for your chauffeur driven Ola and Uber ride, download the app today and check out the latest reduced exact price for your ride. (Don’t forget to redeem the promotional offers)

Source: Money Control 

Read more from GST impact :

Post GST | Movie Tickets in Chandigarh May Cost More


Munish Dhiman

Being an enthusiast, adventurer, blogger, writer, food lover, creative and multi-talented chap, Munish Dhiman is full of life and is always ready to take on challenges in life. You may reach Munish at
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