GST on Zomato, Swiggy orders: Home delivery of food to get expensive? Here’s all you need to know
Zee News
The 45th GST Council on Friday, September 17, approved a proposal to direct food delivery platforms such as Zomato and Swiggy to collect 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, approved a proposal to direct food delivery platforms such as Zomato and Swiggy to collect and pay 5% GST on food orders directly to the exchequer.
For those uninitiated, the tax department levies a 5% GST on cooked food sold by restaurants. In the case of online food delivery, what used to happen is that aggregating platforms such as Zomato and Swiggy used to collect the GST from customers and gave it on to the restaurants.
After receiving GST from food delivery platforms, restaurants had to pay the tax to the government. However, the tax department noticed that this system in place is confusing and even led to the evasion of taxes by restaurants.
