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Swiggy, Zomato to collect 5% GST on deliveries
Swiggy, Zomato to collect 5% GST on deliveries

Lucknow, Sep 17 (TIWN) The GST Council on Friday approved a proposal to treat food delivery apps such as Zomato and Swiggy as restaurants and levy 5 per cent GST on supplies made by them.

Such food delivery apps will now be required to collect 5 percent GST, or Goods and Services Tax, from consumers instead of the restaurant they pick up orders from, Finance Minister Nirmala Sitharaman said on Friday evening after the council meeting.  There would be no extra tax burden on the end consumers taking food delivery from restaurants registered with the GST. However, the levy will plug tax evasion being done by unregistered restaurants.

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