In other words, the pockets of the people are going to be loose again. In that order, customers who use app-based cab service providers like Ola or Uber will also have to pay more.
The GST Council has made this change
The GST Council in its last meeting in 2021 has taken many decisions regarding taxes. For example, the rate of GST (GST on readymade garments and shoes) for readymade garments and shoes costing less than Rs.1000 has been increased from 5 percent to 12 percent.
At the same time, tax on online food orders (GST on online food orders) will now be levied on delivery service providers instead of restaurants. Also, it has been decided to levy GST on auto rentals booked through app-based cab service providers.
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Offline auto taxable
However, this decision of the GST Council will not affect the fare of ordinary cars as they are still outside the scope of GST. In fact, the government keeps auto-booked passengers from the app in the premium category, which is why app-based cabs as well as app-based autos are now being brought under GST.
What will be the effect on you?
Now the question is, how will it affect the common man. This decision of the government may increase the rent burden on the common man. In fact, so far customers prefer to book online to avoid auto drivers’ arbitrariness. But after this decision, now this booking facility is going to be five percent more expensive than before. In other words, auto drivers can now claim higher fares on offline bookings.
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