Food delivery apps to attract GST

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.

If approved, the apps would be given a 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 the 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).

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