GST Council to discuss imposition of 5% tax on food delivery app as restaurant

GST Council to discuss imposition of 5% tax on food delivery app as restaurant

New Delhi, Sep 15 (PTI) The Goods and Services Tax (GST) Council is likely to discuss a proposal to treat food delivery apps like Zomato and Swiggy as restaurants and levy 5% GST on supplies made by them. An official gave this information.

The proposal to make these food delivery apps liable to pay GST on restaurant related services supplied through them is one of over four dozen proposals that the council will discuss in its meeting in Lucknow on September 17.

Once approved in this regard, these apps will be given a certain amount of time to make changes in their software to help in levying such tax.

Once approved by the GST Council, these apps will have to deposit GST with the government for the deliveries made by them. They will give this GST at the place of restaurant. However, there will be no additional tax burden on the final consumers.

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