IAMAI wants 5% GST dropped for app-based rides

The Internet and Mobile Association of India (IAMAI) is calling for a reduction in the Goods and Services Tax (GST) rate for app-based ride-hailing services. The current five percent GST rate is seen as unfair, as drivers often collect fares directly from passengers, bypassing the app. This tax burden affects both drivers and passengers, according to the IAMAI. If the GST rate is reduced, it could lead to lower costs for app-based mobility firms, potentially benefiting the industry and its users.

Why it matters

The GST exemption could help app-based mobility firms in India by reducing their tax burden. This could lead to increased investment and growth in the sector.

Market impact

Transmission channels

Likely winners & losers

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