Restaurant food is now just a click away, thanks to online delivery platforms like Zomato and Swiggy. And while eateries roll out some offer or the other on these platforms every now and then, ordering food from these food delivery platforms might get a bit more expensive from now on, and here’s why!
GST Council Will Include Zomato & Swiggy Under Restaurant Services
The government panel is planning to bring all the application-based food delivery services under the Goods and Services Tax (GST) regime. According to reports, the proposal will be up for discussion in the GST Council meeting on September 17. The GST Council might agree to include Zomato and Swiggy under the horizon of restaurant services, which will make the platforms liable to pay tax.
Food delivery services are likely to get expensive as the GST Council will discuss the proposal to consider food delivery apps such as Swiggy and Zomato as restaurant services. Our story @NewIndianXpress @TNIEBiz https://t.co/AzGVDwUrAn
— Anuradha Shukla (@anu1122) September 15, 2021
Food Aggregators Might Have To Pay GST On Behalf Of Restaurants
The GST panel raised up the issue that the government did not receive proportional revenue from taxes even though the demand for food delivery applications increased during the pandemic. The higher volume of food delivery led to higher tax evasion. It was especially true in the case of restaurants that were not registered but earned a revenue of more than ₹20 lakh a year.
As per estimates, tax loss to exchequer due to alleged under-reporting by food delivery aggregators is Rs 2,000 crore over the past two years.#GSTCouncil #GST #Zomato #Swiggyhttps://t.co/jhDpq45n06
— FinancialXpress (@FinancialXpress) September 15, 2021
The panel estimated GST losses close to ₹2,000 crores from eating and dining. They, therefore, suggested that the food aggregators must be made to pay GST on behalf of the restaurants they have tied up with. Soon, the door-to-door food delivery services will be put under the restaurant service category and you will be charged more for your orders.
First Published: September 18, 2021 11:35 AM