The GST Council meet today is expected to decide whether food orders via app-based online food delivery services such as Zomato and Swiggy will attract additional taxes or not.
GST Council to provide clarity on taxation on food deliveries and if the doorstep or takeaway services by cloud kitchens or central kitchens come under “restaurant service” or not.
Currently, customers pay GST on the food items but not for the delivery service. If classified under “restaurant service” there will be a levy of 5% tax for the delivery service providers as well.
Simply, the cost of delivery and your delivered food is set to go higher as the platforms will most likely pass on the cost to the customer. So you as a customer will pay tax on two services, food and delivery!