New Delhi: Swiggy and Zomato will henceforth collect and pay GST.
The issue was discussed in detail at the 45th GST Council meeting on Friday. Union Finance minister Nirmala Sitharaman, however, clarified that there will be no new tax.
“The specific issue was discussed and any lack of understanding on things like whether the area where the gig office is located will be taxed or whether the area of service will be taxed were addressed. The substance of what has been agreed is that the place of delivery will be taxed. The place where the food is delivered will be the point where tax will be collected by the services like Swiggy and Zomato,” Sitharaman explained.
So will this increase the price of food bill for consumers who have got used to ordering their favourite dishes online through these apps?
The finance ministry clarified that end users will not have to pay anything extra as no tax is being introduced afresh.
To make things even more clear, the tax was earlier paid by restaurants to government authorities. Now aggregators like Zomato and Swiggy will have to pay the tax.
Hence, apps like Swiggy and Zomato will now be registered as tax collectors at source under GST. It will help in curbing tax evasion.
