Swiggy, Zomato to collect 5% GST on deliveries, food not to get dearer


What's the news?

The GST Council has okayed a proposal to treat food delivery apps such as Zomato and Swiggy as restaurants and levy 5 per cent GST on supplies made by them. This essentially means, these apps will now be required to collect 5 per cent GST, or Goods and Services Tax, from consumers instead of the restaurant they pick up orders from.


More to know

"E-commerce operators are being made liable to pay tax on following services provided through them : transport of passengers, by any type of motor vehicles through it (w.e.f. January 1, 2022), restaurant services provided through it with some exceptions (w.e.f. January 1, 2022)," a Finance Ministry statement on the GST Council's decisions said.