How GST applies to a cab ride
Cab and taxi rides in India are treated as passenger-transport services and attract 5% GST (2.5% CGST + 2.5% SGST intra-state, or 5% IGST inter-state) without input tax credit for the rider, per CBIC Notification 11/2017 - Central Tax (Rate) as amended. The 5% rate applies whether you book through an aggregator app (Ola, Uber, Meru) or a private operator registered under GST. Unregistered small operators below the GST threshold (₹20 lakh aggregate turnover) may not charge GST, and their receipts should not include a GST line.
Aggregator vs direct operator
Since 2022, GST on cab rides booked through an aggregator is collected by the aggregator itself, not the driver. That's why Ola and Uber receipts show the aggregator's GSTIN, not the driver's. Direct private cabs (pre-booked or hailed on the street) collect GST on their own GSTIN if they're registered. Check the receipt header: if it says "GSTIN: 27ABCDE1234F1Z5" below the aggregator's name, it's the aggregator's; if it says "Driver Partner GSTIN", it's the driver's. This matters for your employer's audit trail.
What business-travel policies require
- Pickup and drop addresses, both, not just one. Some policies require at least the city name or pincode for both ends.
- Date and time of travel, the ride must fall within your stated travel window.
- Fare breakdown, base fare, distance charge, time charge, toll, parking, operator GST. Lump-sum receipts are often rejected.
- Driver-partner ID and vehicle number, at least one of these for app-booked rides; both for direct operators.
- GSTIN, mandatory on corporate reimbursement claims where the company wants to claim input tax credit. Though note: ITC on cab rides is blocked under Section 17(5) CGST Act, so most companies just use the GSTIN for record-keeping, not ITC.
Cab fares and income tax
Cab rides for official use are reimbursable against actual bills under Rule 3 of the Income Tax Rules, 1962, non-taxable in the employee's hands. Personal cab use that an employer reimburses is a taxable perquisite and must be valued per the CBDT rules. Your employer's HR and CA classify this during annual tax assessment.
Inter-city and airport rides
Inter-city cab rides often follow a different fare structure (distance-based instead of time+distance) and may include an airport-pickup surcharge. Our generator separates the base fare, distance, surcharge, and toll/parking components so the receipt reads cleanly. GST remains 5% regardless of route.
Common mistakes on manual cab bills
- Rounding the total to a whole rupee that doesn't match fare × distance. Finance teams catch this immediately.
- Missing operator GSTIN. For any cab receipt with GST charged, the GSTIN is required under Rule 46.
- No driver-partner ID on an Ola or Uber format. Makes the receipt look fabricated; always include when mimicking an aggregator layout.