There is no planning of the central government to levy a new 5% Goods and Services Tax (GST) without input tax credit on food delivery apps like Zomato and Swiggy, Pankaj Chaudhary, Minister of State for Finance, clarified in Rajya Sabha.
Rajya Sabha member Golla Baburao, Chaudhary, answering a question, mentioned that the Rates of GST are designated by the GST council, a group made up of Union and state government representatives.
At present, the restaurant services, whether ordered directly or through apps like Zomato and Swiggy, are imposed to tax at 5% without GST Input Tax Credit (ITC), except for restaurants in special locations.
At the GST Council’s 55th meeting on December 21, 2024, the question of imposing the tax on food delivery services separately was discussed. As per Chaudhary, “The GST Council recommended that the issue needs further examination.” It directed that no new tax shall be added for now, and the case is still under review.
Already, there is an 18% GST tax on the other services furnished via these apps, such as the platform fee. No other cost to consumers till now is there, as no new 5% GST is being applied to the delivery services at present.
