GST may double Ola, Uber drivers' lease outgo, business may become unviable

Tax on lease under GST regime to rise to 35-43%, from 14.5% currently

Cab aggregators such as Ola and Uber, as well as their drivers might have to pay twice the amount of tax on leasing under the GST regime, making the whole business model unsustainable, claim companies. According to industry experts, lease rentals could rise from 14.5 per cent at present to anywhere between 29 per cent and 43 per cent.

According to Orix India, a leasing finance company wholly owned by Orix Japan, as the tax on services will increase from 15 per cent to 18 per cent, there will be a direct increase in the cost for establishments that give