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GST Council decides online food delivery platforms shall collect GST at delivery
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Tuesday, 21 September, 2021, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The GST Council has decided that online food delivery platforms such as
Swiggy and Zomato need to collect GST at the point of delivery. The
decision will come into effect from January 1, 2022.
The GST (Goods and Services Tax) Council’s 45th meeting was held in Lucknow under the chairmanship of Union Finance & Corporate Affairs Minister Nirmala Sitharaman recently.
The council decision reads that e-commerce operators are being made liable to pay tax on services provided through them, including restaurant
services.
Answering queries on the decision, a spokesperson, for an online food
delivery platform, said that the company was analysing the order of the GST Council. "There has been a demand from the customers about the missing GST in the Bill at the delivery point," pointed out the spokesperson.
It is learnt that food delivery platforms are deliberating upon the
implementation strategy within the stipulated time.
Meanwhile, the GST Council has decided to reduce the tax rates for
Fortified Rice Kernels for Government schemes from 18% to 5%.
Further, it has issued some clarifications as well. It has clarified that
Brewers' Spent Grain (BSG), Dried Distillers’ Grains with Soluble [DDGS] and other such residues, falling under HS code 2303 attract GST at the rate of 5%.
Scented sweet supari and flavoured and coated elaichi falling under heading 2106 attract GST at the rate of 18% while "Carbonated Fruit Beverages or Fruit Drink" and "Carbonated Beverages with Fruit Juice" attract GST rate of 28% and Cess of 12%.
The council states that distinction between fresh and dried fruits and nuts
is being clarified for application of GST rate of “nil” and 5%/12%
respectively.
On services, the council clarified that services by cloud kitchens/central
kitchens are covered under ‘restaurant service’, and attract 5% GST without input tax credit while ice cream parlours selling already manufactured ice cream would attract GST at the rate of 18%.
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