Ordering food through online delivery apps could become cheaper as the GST on these services is set to be reduced.
Media reports suggest that the GST Council may soon lower the food delivery charge, i.e.
The Goods and Services Tax (GST) for e-commerce operators may be reduced to 5%, from the current 18% levied on food delivery.
GST on food delivery may be reduced
If approved by the Finance Minister-led council, the new rate could take effect from January 1, 2025.
However, under the proposed change, food delivery platforms like Zomato and Swiggy will not be able to claim input tax credit.
These platforms will provide relief
This move comes as tax authorities intensify their surveillance of food delivery platforms.
Recently, the tax department instructed Zomato to pay ₹803.4 crore for unpaid taxes from 2019 to 2022.
In a regulatory filing, Zomato stated that it received the demand for unpaid GST interest and penalties on order delivery charges.
If implemented, this proposal could provide relief to both customers and food delivery platforms.
