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With the rise of app-based platforms and local travel agencies, cab services have become more accessible than ever. But whether you’re booking a ride through Uber or hiring a cab for an outstation trip, GST is likely part of your bill. This guide explains the gst on cab service, the tax structure for aggregators and independent operators, and how it affects your ride fare.
Cab services are classified under passenger transportation services and attract GST based on how the ride is booked and who provides it:
Each has different rules under the GST system.
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| Cab Type | GST Rate | Who Pays GST? |
|---|---|---|
| AC cab via aggregator (Ola, Uber) | 5% | Aggregator |
| Non-AC cab via aggregator | 5% | Aggregator |
| Auto-rickshaw via app | 0% (Exempt) | None |
| Local cab booked offline (AC/Non-AC) | 5% or 12% | Operator (if registered) |
| Rent-a-cab (with driver) | 5% or 12% | Operator |
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The gst on rent a cab service in india is either:
This applies to services where a vehicle is rented with a driver. This includes:
For businesses hiring vehicles, GST will be added if the provider is registered.
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Cab operators choose the rate based on their business model and ITC eligibility.
Driver-partners are not required to register under GST if working solely through aggregators.
| Purpose | ITC Allowed? |
|---|---|
| Cabs for employee pick-up/drop | No |
| Cabs hired for official client travel | Yes |
| Cabs used for resale or further supply | Yes |
Companies can claim ITC if cab services are used for client travel or resale.
Understanding the gst on cab service is essential whether you’re running a fleet, hiring a cab for business, or just booking a ride. It helps with pricing clarity, tax planning, and accurate GST compliance.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.