HomeBusinessGST Council's Decision On Food Delivery Apps Such As Swiggy, Zomato Likely

GST Council’s Decision On Food Delivery Apps Such As Swiggy, Zomato Likely

GST Council's Decision On Food Delivery Apps Such As Swiggy, Zomato Likely

Currently, meals supply apps are registered as Tax Collectedat Source (TCS).

New Delhi: The Goods and Services Tax (GST) Council could talk about on a proposal to deal with on-line meals supply platforms like Swiggy and Zomato as eating places and levy 5% of GST on their provides.

Currently, these meals supply apps are registered as Tax Collected at Source (TCS) below the GST.

A proposal to make the supply platforms liable to pay the Goods and Services Tax (GST) on restaurant providers provided via them is one in every of over four-dozen proposals that shall be taken up by the Council at its assembly in Lucknow.

If permitted by the Council, meals supply apps must accumulate and deposit GST with the federal government, instead of eating places, for deliveries made by them.

Analysis of returns filed by supply apps and the restaurant providers in Haryana confirmed hole in taxable turnover for suppliers the place TCS was deducted by a supply app was higher than the turnover declared by such suppliers. This implied that there was a tax evasion.

The evasion quantity could possibly be substantial as meals supply apps largely have excessive provide volumes.

Some of the opposite essential proposals embody shortfall in GST compensation to states, extending lowered GST charges on important Covid-19 medicines and dialogue on bringing petrol and diesel below the GST.

Sources stated that the assembly could talk about levying GST on petroleum crude, excessive velocity diesel, motor spirit (petrol), pure fuel and aviation turbine gas (ATF), based on sources.

The Council can also talk about on extending the GST fee discount from 12% to five% on essential medicines required for the therapy of Covid-19.

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