The GST Council is considering reducing the goods and services tax (GST) on food delivery charges by e-commerce operators from 18% to 5%, CNBC-TV18 reported, citing unnamed sources.
If approved by the Finance Minister-led council, the revised tax rate could come into effect starting January 1, 2022.
However, food delivery platforms like Zomato and Swiggy would not be eligible to claim input tax credits under the proposed change, the report added.
The move comes amid increased scrutiny of food delivery platforms by the tax authorities.
Recently, the tax department directed Zomato to pay Rs 803.4 crore in taxes and fines for non-payment of certain taxes during the period from 2019 to 2022.
The demand order has been received in respect of non-payment of GST on delivery charges with interest and penalty thereon, Zomato said in a regulatory filing.
Source: News 18
