Food delivery services like Swiggy and Zomato will be needed to collect and pay goods and service tax (GST) on behalf of all eateries on their platforms starting January 1, 2022.
At the 45th GST Council meeting this year, Finance Minister Nirmala Sitharaman proposed a duty structure reform for hyperlocal food- ordering services.
The offer was accepted and will be effective from January 1.Food aggregators will be needed to pay 5% GST on cooked food orders placed through their platforms starting Saturday.
Experts say the change would have an impact on both end- users and small businesses.
Due to the change in the tax structure, Swiggy and Zomato are projected to have a gained adherence burden. Under the renewed GST rule, the central government moved the duty of tax collection from diners’ shoulders to food aggregators similar as Swiggy and Zomato. The 5 percent GST demand will be over and above the being 18 percent GST that platforms need to pay for offering delivery services through their platforms. The duty will basically be applied to the price of the food particulars that are listed on these apps
Zomato, Swiggy, and any other food delivery apps haven’t reflected on the matter or stressed anything on charging excess from clients once the new GST rule comes into effect.
