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Food delivery apps like Swiggy and Zomato may soon be brought under the ambit of restaurant services, which will make them liable to pay the Goods and Services Tax (GST). The GST Council will consider this in a meeting on Friday.
More to know
The fitment panel has recommended that e-commerce operators that provide restaurant services on their apps or websites must be notified as ‘e-commerce aggregators’ in the same category as restaurant services, making them suppliers and thus, liable to pay GST.
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
Legal experts say due to the unavailability of input tax credit and other complications, Swiggy and Zomato may see tax cascading or double taxation.
As GST would be applied on two stages of the supply chain—once by the restaurants, then by the pla ..
So, earlier if you ordered food worth Rs 1,000 from Swiggy, the restaurant would charge 5% GST on the cost (Rs 50 in GST).
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
Legal experts say due to the unavailability of input tax credit and other complications, Swiggy and Zomato may see tax casca ..
So, earlier if you ordered food worth Rs 1,000 from Swiggy, the restaurant would charge 5% GST on the cost (Rs 50 in GST).
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
Legal experts say due to the unavailability of input tax credit and other complications, Swiggy and Zomato may see tax casca ..
So, earlier if you ordered food worth Rs 1,000 from Swiggy, the restaurant would charge 5% GST on the cost (Rs 50 in GST).
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
Legal experts say due to the unavailability of input tax credit and other complications, Swiggy and Zomato may see tax casca ..
So, earlier if you ordered food worth Rs 1,000 from Swiggy, the restaurant would charge 5% GST on the cost (Rs 50 in GST).
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
Legal experts say due to the unavailability of input tax credit and other complications, Swiggy and Zomato may see tax casca ..
So, earlier if you ordered food worth Rs 1,000 from Swiggy, the restaurant would charge 5% GST on the cost (Rs 50 in GST).
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
So, earlier if you ordered food worth Rs 1,000 from Swiggy, the restaurant would charge 5% GST on the cost (Rs 50 in GST).
Now, 5% GST will also apply on Rs 1,050. While the government has claimed that this is not set to impact the cost to the customers, the platforms want clarity on the precise methodology of the tax, say people aware of the development.
Legal experts say due to the unavailability of input tax credit and other complications, Swiggy and Zomato may see tax casca ..
Zomato Website: https://www.zomato.com/
Swiggy Website: https://www.swiggy.com/
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