GST Council to discuss treating food delivery apps as restaurants, levying 5% tax


Once approved by the GST Council, food delivery apps will have to collect and deposit GST with the government, in place of restaurants, for deliveries made by them. There would be no extra tax burden on the end consumers.



The all-powerful GST Council is likely to discuss on Friday a proposal to treat food delivery apps such as Zomato and Swiggy as restaurants and levy 5 percent GST on supplies made by them, an official said. A proposal to make the delivery platforms liable to pay the Goods and Services Tax (GST) on restaurant services supplied through them is one of over four-dozen proposals that will be taken up by the Council at its meeting in Lucknow on September 17.


If approved, the apps would be given certain time to make changes in their software to allow for such tax to be charged.


Once approved by the GST Council, food delivery apps will have to collect and deposit GST with the government, in place of restaurants, for deliveries made by them. There would be no extra tax burden on the end consumers.

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