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Govt plans 5% GST on Swiggy, Zomato deliveries

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desiman

Govt plans 5% GST on Swiggy, Zomato deliveries

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 per cent 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.

As per estimates, tax loss to exchequer due to alleged under-reporting by food delivery aggregators is Rs 2,000 crore over the past two years.

Under GST, these apps are currently registered as Tax Collectors at Source (TCS).

One of the reasons for designing such a proposal was that there was no mandatory registration check by Swiggy / Zomato and there were unregistered restaurants supplying through these apps.

Even though the rate of tax is low, since food delivery volumes are high, the tax evasion amount is also substantial, the official said.

Analysis of returns filed by delivery apps and the restaurant services for the state of Haryana showed that for Zomato, the gap in taxable turnover for suppliers where TCS was deducted by Zomato was greater than the turnover declared by such suppliers. Therefore, there was evasion of tax.

Similarly, in the case of Swiggy, there was a gap in taxable turnover for suppliers where TCS deducted by the app was greater than the turnover declared by such restaurant suppliers.

Accordingly, the suggestion of food delivery apps collecting and depositing GST with the government would be placed before the GST Council, the official added.

https://news.rediff.com/commentary/2021/sep/15/...

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Deal Captain Deal Captain
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Inko kuch kaam dhanda nai hai kya rage
Petrol/Diesel ko lau pehele GST me pir ye sb sochna confused

This is totally unfair for all AAM_AADMIs in India cry

Now Swiggy/Zomato will have a new reason to hike their prices hushed

Deal Captain Deal Captain
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MrKool_JJ wrote:

Inko kuch kaam dhanda nai hai kya rage
Petrol/Diesel ko lau pehele GST me pir ye sb sochna confused

This is totally unfair for all AAM_AADMIs in India cry

Now Swiggy/Zomato will have a new reason to hike their prices hushed

as per the article

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.

Deal Subedar Deal Subedar
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MrKool_JJ wrote:

Inko kuch kaam dhanda nai hai kya rage
Petrol/Diesel ko lau pehele GST me pir ye sb sochna confused

This is totally unfair for all AAM_AADMIs in India cry

Now Swiggy/Zomato will have a new reason to hike their prices hushed

Read it again ..
Instead of restaurants now GST has to be paid by Swiggy/Zomato… No additional impact to customer….

https://www.thehindu.com/news/national/gst-coun...

Deal Subedar Deal Subedar
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I think it is best move by government as there is not impact of consumer, only the liability of gst will be on swiggy & zomato, it will close any tax evasion by restaurants.

Deal Cadet Deal Cadet
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Sudarshan61 wrote:

Read it again ..
Instead of restaurants now GST has to be paid by Swiggy/Zomato… No additional impact to customer….

https://www.thehindu.com/news/national/gst-coun...

“The whole GST is created to safeguard consumers only, and have to save them from dual taxes and etc. And everything will be cheaper once the GST is implemented."

And it’s not joke.

Deal Cadet Deal Cadet
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Sudarshan61 wrote:

Restaurant won’t charge it. Overall no impact to anyone .

Sometime I have filling as people don’t understand taxes or they trust there government too much.

Community Angel Community Angel
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MrKool_JJ wrote:

Inko kuch kaam dhanda nai hai kya rage
Petrol/Diesel ko lau pehele GST me pir ye sb sochna confused

This is totally unfair for all AAM_AADMIs in India cry

Now Swiggy/Zomato will have a new reason to hike their prices hushed

Income tax and gst council ko jha income dikhti whi phuch jate hey will start taking gst on beggars income too

Deal Newbie Deal Newbie
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Read it again, when you order food from small restaurants which are not registered under gst, you effectively pay no tax on that but now as tax is paid by swiggy. So you have to pay gst on all orders now and that the reason govt want to apply it on swiggy or zomato. So ultimately consumer is in loss. Think it like if there is no impact on consumer, there can’t be any additional tax which govt can receive. And if no additional tax then why to change provision. Read it again u can see a big difference between turnover reported vs gst collected.

Deal Subedar Deal Subedar
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SG_Magical wrote:

Read it again, when you order food from small restaurants which are not registered under gst, you effectively pay no tax on that but now as tax is paid by swiggy. So you have to pay gst on all orders now and that the reason govt want to apply it on swiggy or zomato. So ultimately consumer is in loss. Think it like if there is no impact on consumer, there can’t be any additional tax which govt can receive. And if no additional tax then why to change provision. Read it again u can see a big difference between turnover reported vs gst collected.

it is mandatory for any business using aggregator service to register under GST.

Today swiggy/zomato dont have that check hence it makes sense to make them pay GST instead of the restaurant.

Deal Subedar Deal Subedar
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popeyethedimer wrote:

Whenever a tax is imposed final burden is always on cutomer.

New tax is not imposed.
Instead of restaurant is has to be now paid by aggregator.

Community Angel Community Angel
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Sudarshan61 wrote:

New tax is not imposed.
Instead of restaurant is has to be now paid by aggregator.

Then their is no problem it will be more easy to collect tax now rather then collecting from restaurant.

Hunk Hunk
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Why people hate This government.. ghar ka khana khao na.healty rahoge

Deal Newbie Deal Newbie
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desiman wrote:

as per the article

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.

You think that swiggy/Zomato will pay it from their profit/loss. Then brother you are living a dream. They will obviously pass it to customer by increasing their delivery charges and as usual we will say “sab changa si”.

Deal Subedar Deal Subedar
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What I understand is that.

1. For, A big restaurant or a GST registered restaurant who cuts a GST bill there wont be any diff before and after the implementation as the price of the products already has GST included. (It may be possible that these business to invade taxes, include the GST price in the food produce but do not submit taxes as they may not create bills for online orders)

2. For small restaurants who do not come under GST, will have to make their items listed as cost without GST. Swiggy will collect GST for them and pass on to the govt. Remember it is the customer who pays the GST. Business never pays the GST. Its the duty of businesses to collect and pay GST to govt. So, in case of small restaurants the price of food produce will increase.

Deal Lieutenant Deal Lieutenant
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popeyethedimer wrote:

Then their is no problem it will be more easy to collect tax now rather then collecting from restaurant.

Actually online aggregators deducts tcs from restaurants and deposits with govt. But restaurants not showing those incomes and that tax amount laying with gst office witout claim. So mismatch Happening in gst returns filed by restaurants. Now this step is to plug in the loophole.

Community Angel Community Angel
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Bk100 wrote:

Actually online aggregators deducts tcs from restaurants and deposits with govt. But restaurants not showing those incomes and that tax amount laying with gst office witout claim. So mismatch Happening in gst returns filed by restaurant. Now this step plug in the loophole.

Many restaurants don,t have gst no some are like very small shop , some even don,t have fixed place of their own sweat_smile .

Deal Subedar Deal Subedar
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Toh Abhi tak jo restaurant charges , delivery charges and packing charges dete the, woh kahan jaata hai. stuck_out_tongue_winking_eye

Deal Captain Deal Captain
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SG_Magical wrote:

Read it again u can see a big difference between turnover reported vs gst collected.

Means another glitch fixed ? In that case this is a very good move.

Deal Captain Deal Captain
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tuckless wrote:

You think that swiggy/Zomato will pay it from their profit/loss. Then brother you are living a dream. They will obviously pass it to customer by increasing their delivery charges and as usual we will say “sab changa si”.

sab changa hai isliye sab jagah se tax hi tax lag raha hai pensive

Deal Lieutenant Deal Lieutenant
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popeyethedimer wrote:

Many restaurants don,t have gst no some are like very small shop , some even don,t have fixed place of their own sweat_smile .

But swiggy and zomato deducts tcs from unregistered restaurant also. This is where mismatch happening.

In case of Amazon and fk it is not happening as they are very strict and not enrolling Unregistered dealers on platform.

Community Angel Community Angel
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Bk100 wrote:

But swiggy and zomato deducts tcs from unregistered restaurant also. This is where mismatch happening.

In case of Amazon and fk it is not happening as they are very strict and not enrolling Unregistered dealers on platform.

Yes this mismatch will continue until they are strict but their  no of restaurant will decrease initially .

Deal Lieutenant Deal Lieutenant
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popeyethedimer wrote:

Yes this mismatch will continue until they are strict but their  no of restaurant will decrease initially .

But now that is not needed.

Instead of tcs now online aggregators will pay gst to govt and pass on that credit to gst registered restaurant and for unregistered they will pay gst amount on unregistered restaurant behalf.

Community Angel Community Angel
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Bk100 wrote:

But now that is not needed.

Instead of tcs now online aggregators will pay gst to govt and pass on that credit to gst registered restaurant and for unregistered they will pay gst amount on there behalf.

That’s is good something proper was needed smile

Deal Cadet Deal Cadet
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5% is too lezz. It should be 18% or more.


And put 100% CVD and special cess on Sulabh International.

Sulabh Shauchalay are ..kind of.. in a recession-proof business.
So their customer base would not go down just because of increased cost of service.

I mean come on! Koi bhi.. kitne din rok kar rakh sakta hai? Finally tou jaana hee padega na🚽🚻!

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