Ola, Uber Auto rides may get costlier from Jan 1 as Center levies 5% GST

The central government has announced that it will levy 5% GST on auto rides booked online with effect from January 1, 2022, eliminating the existing exemptions.

Auto rickshaw rides booked through app aggregators like Ola, Uber are set to become more expensive from January 1, 2022, as the central government has decided to levy 5% GST on these rides booked online.

Seeking a reconsideration of the move, an Uber spokesperson told The Times of India that while they appreciate the government’s need to collect revenue, they have urged it to reconsider the tax, which will eventually lead to auto It will also affect the earnings of the drivers . Government’s Digitization Agenda

The central government has announced that it will levy 5% GST on auto rides booked online with effect from January 1, 2022, eliminating the existing exemptions. Auto rides taken from roads will be GST free. “We urge the government to reinstate the GST exemption for online auto products in the ride-sharing industry to ensure that riders, drivers and the city continue to benefit from developments in this sector,” he added.

Stating that there has been a fall in earnings due to COVID-19 and it is unfortunate that the government now wants a 5% cut in earnings, Raghu N, representative of the auto-rickshaw drivers’ union Peace Auto, urged the central government. asked to withdraw. do.

Rapido co-founder Arvind Sanka said that in view of the new policy being launched by the government, the ride-hailing business will have a huge adverse impact on both the driver and the rider. “This policy can reduce the rate of consumers opting for auto rides, thereby reducing the hassle of commuting,” he said.

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