GST on Ola Uber: The general public is going to get a shock of inflation again. Now it has been decided to levy GST on the fare of autos booked through app-based cab service providers.
In the new year also, the general public is going to get a big blow of inflation. Tax (GST) is increasing on many services and goods from January 1. Let us tell you that many things which were out of the purview of tax till now are also being made taxable.
That is, now people’s pockets are going to be loose again. In this sequence, customers who use App-Based Cab Service Provider like Ola or Uber will also have to pay more money.
GST Council made these changes
The GST Council in its last meeting in the year 2021 has taken many decisions regarding tax. For example, the rate of GST (GST on Readymade Garments and Shoes) has been increased from five percent to 12 percent on readymade garments and shoes less than Rs. 1000.
At the same time, tax on online food orders (GST on Online Food Order) will now be charged from the delivery service provider instead of the restaurant. Apart from this, it has now been decided to levy GST on the fare of autos booked through app-based cab service providers.
Offline auto taxable
However, this decision of the GST Council will not affect the fare of normal autos as they are still outside the purview of GST. Actually, the government keeps the commuters who book autos from the app in the premium category, that is why, now along with app-based cabs, app-based autos are also being brought under the purview of GST.
What will be the effect on you?
Now the question is, how will this affect the general public. This decision of the government may increase the burden of rent on the common people. Actually, till now customers preferred to book online to avoid the arbitrariness of auto drivers. But after this decision, now this booking facility is going to be five percent more expensive than before. That is, now auto drivers can demand more fares in the offline booking.
