In a significant improvement, the GST Council, headed by the union finance minister and consists of representatives from all states and UTs, on Friday in its forty fifth assembly took a giant choice to cost companies by cloud kitchens and meals supply platforms like Zomato and Swiggy a 5 per cent GST.
What it means is that from January 1, meals supply apps should acquire and deposit 5 per cent GST with the federal government, rather than eating places, for deliveries made by them.
Noteworthy, there could be no further tax burden on the tip shopper.
“Meals supply operators like Swiggy who acquire orders from eating places and ship (to prospects)… The place the place the meals is delivered would be the level on which tax shall be collected by the gig teams Swiggy and others,” Union Finance Minister Nirmala Sitharaman mentioned.
Commenting on the choice, Income Secretary Tarun Bajaj added, “There isn’t any further tax, there isn’t any new tax.”
“The tax was payable by eating places, now as a substitute of eating places, the tax shall be payable by aggregators which may even… Forestall income leakage,” he mentioned.
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