Zomato, Swiggy will now charge GST on delivery from customers instead of restaurants!
The GST Council has decided that online food delivery platforms like Swiggy and Zomato will now charge tax on goods from consumers instead of restaurants for ease of tax administration. The GST Council, chaired by the Union Finance Minister and comprising representatives from all states and union territories, has decided to levy 5 percent GST on services by cloud kitchens and food delivery platforms. From January 1, food delivery apps will have to deposit GST with the government at the location of the restaurant for the deliveries made by them.
Sitharaman said on Friday or after the Goods and Services Tax Council meeting, Union Finance Minister Nirmala said, "Food delivery operators like Swiggy that take orders from restaurants and deliver (to customers)... is delivered, the gig group will charge Swiggy and other taxes there."
However, the move will not have any impact on the end consumer, Revenue Secretary Tarun Bajaj said. He said, “There is no additional tax, no new tax. The tax which was payable by restaurants, now instead of restaurants, will be payable by tax aggregators which… will also prevent revenue leakage.
The GST Council also raised concessional tax rates on Covid-19 drugs, cut tax on cancer drugs, and waived off GST on imports of highly expensive drugs for muscular atrophy, but excluding petrol and diesel from the same national tax regime. Will continue to put out.
While briefing the media after the meeting, Sitharaman said. "The members of the GST Council clarified that they do not want petroleum products to be included under GST. We will report to the Kerala High Court that the matter has been discussed and the Council has felt it. Now is not the time to bring petroleum products under the purview of GST.
Sitharaman announced a reduction of the GST rate on biodiesel from 12 percent to 5 percent, which is supplied to oil marketing companies for blending with diesel.