GST Council eyes clarity on cab aggregator tax; Ola, Uber, Rapido fares in focus

GST Council may clarify whether 5% GST applies on full ride fare or only platform commission for Ola, Uber and Rapido. While the move aims to ease compliance for aggregators, commuters could face higher fares if the tax is passed through end-to-end.

— Filed Wed, 20 May, 2026, 17:26 IST · Source Business Today · Latest · Updated

GST Council may clarify whether 5% GST applies on full ride fare or only platform commission for cab aggregators Ola, Uber, Rapido. Move aims to ease compliance, but commuters could face higher fares if tax is passed through.

Why this matters

Ola faces fresh regulatory heat after Maharashtra ordered FIRs against its founders alongside Uber and Rapido over illegal bike taxi operations. GST clarity adds another compliance layer.

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