The 57th official GST Council meeting will be conducted on October 8, with an agenda to streamline tax rates, ease compliance, and provide clarity on Input tax credit claims across multiple industries.
One of the most consumer-facing proposals under consideration is a tax reduction on delivery charges imposed via e-commerce and food aggregators like Swiggy and Zomato.
The Council will consider several proposals aimed at standardising tax rates, resolving sector-specific ambiguities, and addressing long-pending ITC issues related to consumer services.
Relief For Online Food Delivery and Service Platforms
In a move to reduce tax on the ordering food and goods online, the GST Council will consider reducing the tax rate on delivery fees levied via e-commerce platforms like Swiggy and Zomato from 18% to 5% at its upcoming 57th gst council meeting. Currently, food prepared and delivered through these platforms attracts 5% GST, whereas the delivery fee charged to customers is taxed separately under the higher 18% slab.
This discrepancy shall be removed if the delivery fees are drawn under the 5% slab. It eases billing structures for platforms and end consumers. Authorities may acknowledge allowing ITC for hotels and restaurants currently paying a 5% GST rate, resolving a pain point for uncredited input costs. It furnishes crucial operational relief to service operators.
