• हिन्दी
  • ગુજરાતી
  • বাংলা
  • తెలుగు
  • मराठी
  • ಕನ್ನಡ
  • money9
  • Insurance
  • Saving
  • Mutual Funds
  • Mirae Asset MF
  • Breaking Briefs
downloadDownload The App
Close
  • Home
  • Videos
  • Podcast
  • Banking
  • Bulletin
  • Gold
  • Healthcare
  • Real Estate
  • Tax
  • Travel
  • Survey 2023
  • Survey Report
  • Breaking Briefs
  • Insurance
  • Savings
  • Loan
  • Crypto
  • Investment
  • Mutual Funds
  • Real Estate
  • Tax
  • Exclusive
  • Home / Economy

Zomato, Swiggy bite nails as they await clarity on GST

Food delivery apps are concerned that the way the tax system works, they could see a jump in their total cost.

  • Money9
  • Last Updated : September 23, 2021, 15:49 IST
  • Follow
According to the GST Council, food delivery apps will have to collect and deposit 5% GST with the government.
  • Follow

Food delivery companies Zomato and Swiggy have approached the government seeking clarification on GST Council’s decision to tax food delivery services. They have sought clarity on how GST would be levied and whether it would lead to “tax cascading” or problems in claiming input tax credits, according to a report by The Economic Times.

GST Council decision

In the 45th GST Council meeting, it was decided to treat food delivery companies on par with restaurant services and tax them accordingly. As things stand today, GST is paid by the restaurants, not by the food delivery services.

According to the GST Council, food delivery apps will have to collect and deposit 5% GST with the government, in place of restaurants, for deliveries made by the platforms, beginning from January 1 next year.

The government has claimed that since no new tax has been introduced, the overall bill for the consumer will not increase since they will continue to pay the 5% tax on food ordered online.

However, the food delivery companies are concerned about the rise in their total cost following the GST Council’s decision. It was decided in last Friday’s meeting that the responsibility for paying the tax on delivery services will now lie with the food-delivery apps.

Cascading tax

According to legal experts quoted by ET, in the absence of any input tax credit, and owing to some other complications, food delivery companies such as Zomato, Swiggy and FoodPanda may see their tax cascading or even face double taxation since GST would be applied on two stages of the supply chain—once by the restaurants, then by the platforms. The legal experts said that the food delivery companies would not be able to set it off under the input tax credit mechanism.

The paper quoted Abhishek A Rastogi, partner at Khaitan & Co, saying, “The tax cascading due to the proposal must be the last thing as the indirect tax cost will be recovered from the final consumer and GST Council has been extremely pragmatic for the foods & beverages sector.”

Published: September 23, 2021, 15:49 IST

Download Money9 App for the latest updates on Personal Finance.

  • food delivery app
  • goods and services tax
  • GST

Related

  • दुर्लभ खनिज उत्पादन के लिए 1,345 करोड़ रुपये की प्रोत्साहन योजना का प्रस्ताव: कुमारस्वामी
  • पीडब्ल्यूसी का पेट्रोल उत्पादों को जीएसटी में शामिल करने, कर स्लैब कम करने का सुझाव
  • सीतारमण 10 जून को एफएसडीसी की बैठक में अर्थव्यवस्था की स्थिति की करेंगी समीक्षा
  • अमेरिकी टैरिफ से भारत में महंगाई बढ़ने, रोजगार जाने का रिस्क नहीं: अर्थशास्त्री
  • RBI: खपत में आ रही तेजी, आंकडे दे रहे गवाही जल्द हाई ग्रोथ ट्रैक पर लौटेगी अर्थव्यवस्था
  • मुंबई में पेट्रोल-डीजल वाहनों पर बैन को लेकर हो रहा विचार, सरकार ने स्टडी करने के लिए बनाई कमेटी

Latest

  • 1. Know the correct way to get KYC done!
  • 2. Why health insurance claim gets rejected?
  • 3. Power to Respond!
  • 4. What is Asset Under Management?
  • 5. No Worries on Medical Expenses!
  • Trending Stories

  • आयकर रिफंड में 2013-14 से 474 प्रतिशत की वृद्धि, पिछले 11 वर्षों में जारी करने का समय हुआ बेहतर
  • वेतन वृद्धि टीसीएस की प्राथमिकता; लाभप्रदता के साथ वृद्धि पर ध्यान: सीएफओ
  • डीएलएफ के पास बाजार की आकांक्षी जरूरतों को पूरा करने के लिए मजबूत पाइपलाइन: चेयरमैन
  • बिट्स पिलानी विस्तार, अमरावती में नए परिसर पर 2,200 करोड़ रुपये का निवेश करेगा
  • एयर इंडिया पायलटों के साथ विमान दुर्घटना की प्रारंभिक रिपोर्ट की समीक्षा करेगी
  • TV9 Sites

  • TV9 Hindi
  • TV9Telugu.com
  • TV9 Marathi
  • TV9 Gujarati
  • TV9 Kannada
  • TV9 Bangla
  • News9 Live
  • Trends9
  • Tv9tamilnews
  • Assamtv9
  • Malayalamtv9
  • Money9 Sites

  • Money9 Hindi
  • Money9 English
  • Money9 Marathi
  • Money9 Telugu
  • Money9 Gujarati
  • Money9 Kannada
  • Money9 Bangla
  • Money9live
  • Topics

  • Insurance
  • Savings
  • Loan
  • Stocks
  • Mutual Funds
  • Real Estate
  • Tax
  • Crypto
  • Exclusive
  • Follow us

  • FaceBook
  • Twitter
  • Youtube
  • Instagram
  • Linkedin
  • Download App

  • play_store
  • App_store
  • Contact Us
  • About Us
  • Advertise With Us
  • Privacy & Cookies Notice
  • Complaint Redressal
  • Copyright © 2025 Money9. All rights reserved.
  • share
  • Facebook
  • Twitter
  • Whatsapp
  • LinkedIn
  • Telegram
close