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Zomato, Swiggy now below GST; will it is foremost to pay further for food?

Keep in mind that diversified foods belong to diversified tax slabs and that will also be a important part if the mark increases within the shut to future

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Updated: Sep 17, 2021, 10: 04 PM IST

Addressing the media on Friday on the GST council meeting, Finance Minister Nirmala Sitharaman said that food tech giants Swiggy and Zomato will now bag to pay GST. 

Explaining that there will more than seemingly be no fresh tax, she said, “The explicit issue modified into talked about and any lack of notion on issues love whether the residence the place aside the gig place aside of job is found will more than seemingly be taxed or whether the residence of carrier will more than seemingly be taxed were addressed. The substance of what has been agreed is that the place aside of shipping will more than seemingly be taxed. The place aside the place aside the food is delivered may be the level the place aside tax will more than seemingly be amassed by the companies and products love Swiggy and Zomato.”

In most cases, earlier the tax modified into paid by the restaurant homeowners but now the aggregator will also bag to pay the same. Sitharaman further said, “Relate you picture food from the aggregator, now the restaurant is paying taxes. However we stumbled on some restaurants were now not paying. We are now announcing that within the occasion you picture the aggregator will accumulate from the buyer and pay to the authorities in desire to the restaurant doing this.”

On story of the ministry has already clarified that there will more than seemingly be no fresh tax for this, therefore, the live-customers will now not bag to pay the relaxation further. Also, to any extent further Swiggy and Zomato will more than seemingly be registered as Tax Collectors at Provide below GST. As per reports, this tweak within the tax regime modified into an necessary to curb tax evasion.

Currently, restaurants pay 5 per cent GST on food funds whereas the aggregators love Swiggy and Zomato pay 18 per cent GST on the associated charge. On the opposite hand, if this fresh reform is proper a mere transfer of assortment and charge, then the food prices will now not crawl up, but take notice of that diversified foods belong to diversified tax slabs and that will also be a important part if the mark increases within the shut to future. On the opposite hand, nothing has been said on this front

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Kunal Guha

Director, Founder and Editor in Chief
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