GST Council May Simplify Tax Rules For Ola, Uber & Rapido; Cab Fares Could See Impact

The GST Council is likely reviewing taxation rules for app-based cab aggregators like Ola, Uber and Rapido. Sources say the panel may clarify whether 5% GST should apply on the full ride fare or only on the platform commission charged by aggregators. The move aims to reduce compliance burden and end long-standing ambiguity for ride-hailing platforms. However, if the tax burden is passed on, daily commuters could see cab fares rise.