GST Council may lower tax on food delivery charges by e-commerce operators to 5% from 18%
Reportedly the GST Council is considering reducing the goods and services tax (GST) on food delivery charges by e-commerce operators from 18% to 5%, reported, citing unnamed sources. If approved by the Finance minister led council, the revised tax rate could come into effect starting january 1, 2022. However, food delivery platforms like zomato and swiggy would not be eligible to claim input tax credits under the proposed change, the report added.Meanwhile the move comes amid increased scrutiny of food delivery platforms by the tax authorities. The report added that the food delivery platforms like zomato and swiggy would not be eligible to claim input tax credits under the proposed change.Moreover recently, the tax department directed zomato to pay Rs 803.4 crore in taxes and fines for non-payment of certain taxes during the period from 2019 to 2022. The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon, zomato said in a regulatory filing. The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon, zomato said in a regulatory filing.