GST on Zomato, Swiggy orders: Home delivery of food to get costly? Here’s all you need to know
The 45th GST Council on Friday, September 17, accept a proposal to coordinate food delivery platforms such as Zomato and Swiggy to gather and pay 5% GST on food orders directly to the exchequer.
New Delhi: The 45th Goods and Service Tax (GST) Council on Friday, September 17, supported a proposition to coordinate food conveyance stages, for example, Zomato and Swiggy to gather and pay 5% GST on food arranges straightforwardly to the exchequer.
For those uninitiated, the tax department imposes a 5% GST on cooked food sold by restaurants. In the case of online food delivery, what used to happen is that amassing stages, for example, Zomato and Swiggy used to gather the GST from clients and gave it on to the restaurants.
After receiving GST from food delivery platforms, restaurants needed to pay the tax to the government. However, the tax department saw that this system in place is confusing and even led to the evasion of taxes by restaurants.
So, to bring clarity in taxation, the GST Council has now decided that food delivery companies will only collect and pay the 5% GST on food orders directly to the government.
“Food delivery apps will now be required to collect 5% GST from consumers instead of the restaurant they pick up orders from,” Finance Minister Nirmala Sitharaman said in a press conference after the Council meeting.
Source: zeenews
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