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Swiggy, Zomato to pay 5% GST; Will customers pay more?

LUCKNOW: The GST Council decided to charge online delivery operators such as Zomato and Swiggy a tax even as it extended concessional tax rates on certain coronavirus drugs by three months till Deember 31. Informing about the decision Finance Minister Nirmala Sitharam said that Food delivery apps like Zomato and Swiggy will collect five per cent GST, or Goods and Services Tax, from consumers instead of the restaurant they pick up orders from.

FM Nirmala Sitharaman said the food delivery platforms will have to pay GST on restaurant service supplied through them and the tax will be charged at point of delivery. A 5% GST will be levied at the point where the delivery is made by Swiggy and Zomato

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Currently three apps are registered as TCS or Tax Collected at source, according to GST records.

Talking to the media, Revenue Secretary Tarun Bajaj said that no new taxes were being announced and GST collection point was simply being transferred.

Earlier, tax was paid by restaurants but now aggregators such as Zomato and Swiggy will pay the tax, the GST Council decided. This move is also expected to help protect revenue.

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