How new GST tax impacts food delivery apps

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No extra burden on customers

New Delhi: As per the latest GST Council decision, food delivery apps such as Zomato and Swiggy will have to collect and deposit 5 per cent GST with the government grom January 1, 2022, in place of restaurants, for the food deliveries.

This transfer of responsibility was proposed by the government with the aim of bringing several restaurants that had not been paying taxes under the GST net. Currently, if a customer orders food, for example, from a restaurant using a food delivery app, the food delivery platform collects 5 per cent tax on food from the customer and passes it on to the restaurant. However, the government believes that several restaurants have not deposited their tax despite them recording high turnover.

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