The GST Council has approved a new proposal that food delivery platforms like Zomato and Swiggy will be required to collect and deposit 5% GST per order from January 1. However, this does not affect the end user. how? learn more about.
Whenever I order something from Zomato or Swiggy, I already pay 5% GST on my order. The platform adds this to the total bill and passes the GST to the restaurant. It’s a fairly simple process that worked very efficiently for these companies and is now worth billions of dollars.
However, it does not work very smoothly for tax collectors. The government claims that restaurants cannot pay tax on a fair share of GST even if they have recorded higher sales. To solve this problem, the government has imposed tax filing fees on Swiggy and Zomato.
Currently, instead of collecting taxes from users and passing them to restaurants hoping to pass them on to the government, Zomato and Swiggy collect tax on all orders and pass them directly to the government. As a result, restaurants are also forced to register for e-commerce sellers.
However, the user has already paid 5% tax, so there is no real impact on the food order.
This solution may eliminate tax evasion, but instead it may also create new problems. Tax experts suggest that the new regulation also covers small restaurants, ie restaurants with annual sales of less than Rs 200,000. At present, these restaurants are exempted from GST net.
It also creates trouble for a restaurant that has to store two books. One is for tracking individual business and the other is for tracking online orders from Zomato and Swiggy.
Last but not least, the responsibility of GST filing now rests on their shoulders, which puts more burden on the food aggregators as well.
Zomato and Swiggy will now charge 5% GST on delivery. This is what it means for you:
source link Zomato and Swiggy will now charge 5% GST on delivery. This is what it means for you: