(Image source from: Economictimes.indiatimes.com)
Lakhs of Indians are now depending on food delivery apps because of their busy schedules. Some of them are in a rage to taste new food on a regular basis. Zomato and Swiggy are the leaders in the game and there is a breaking news that says that the deliveries of Zomato and Swiggy may cost more in the coming days. The delivery charges will increase as per the agenda on the GST Council and the meeting is scheduled to take place this week. GST Council's Fitment Committee suggested for the additional tax. A clarity on the food deliveries to the doorstep comes under the restaurant service. There are two options that are kept before the GST Council.
The Fitment Committee proposed e-commerce operators will be notified as deemed suppliers or as aggregators. If the council votes for deemed suppliers, the ECOs will have a proposal of a tax rate of 5 percent without input credit and 18 percent with input credit from the restaurant. The rate will be fixed later. If the move is applied, all the supplies that are made in the name of restaurant service will come under GST and they have to be paid by the online food-delivery firms. If this happens, the food delivery companies will increase the prices of food along with the delivery.