GST Council decision: Companies like zomato and swiggy that order food online have been brought under the ambit of GST. New rules have been issued for these which will be effective from January 1.
New Delhi. Online food ordering has become a trend. Online food delivery companies like zomato and swiggy earn crores from this business. For several days there were reports that online food delivery apps would now come under the purview of 5% GST. No such decision has been taken directly in the GST meeting held on Friday, but still the tension of these companies has increased.
what is the matter
Food aggregators i.e. food delivery companies have been brought under the purview of GST. Union Revenue Secretary Tarun Bajaj clarified that this is not a new tax. Restaurants take GST from customers and pay it to the government, but it was found that restaurants used to collect tax from the customer but did not pay it to the government. Therefore, now the aggregators (food delivery companies) will pass that GST from the customer to the government. The government has taken this decision to prevent tax evasion.
There will be no effect on customers
After this decision of the GST Council, there will be no impact on the pocket of the common man. Because the customer pays the GST while ordering the food. Even now the customer will continue to pay this tax as before. The only difference is that earlier this tax used to go to restaurants and now it will be given to e-commerce companies like Swiggy and Zomato, who will have to deposit the tax to the government. This rule will be applicable from January 1, 2022.
Also these decisions
In the 45th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman in Lucknow on Friday, most states have opposed bringing petrol and diesel under the ambit of GST. At the same time, some other life-saving medicines, including those used in the treatment of corona and cancer, will now be cheaper. Along with this, the national permit fee being charged by the states for the operation of freight vehicles has been exempted.
