Online food delivery platforms shall collect GST at delivery :GST Council

Online food delivery platforms shall collect GST at delivery :GST Council

The GST Council has determined that platforms for online food delivery such as Swiggy and Zomato must collect GST at the point of delivery. Beginning January 1, 2022, the decision will take effect.

Recently, the 45th meeting of the GST (Goods and Services Tax) Council was held in Lucknow, Uttar Pradesh, under the presidency of Union Finance & Corporate Affairs Minister Nirmala Sitharaman.

According to the council resolution, e-commerce businesses would be required to collect tax on the services they provide, including restaurant services.

In response to questions about the ruling, a representative for an online meal delivery platform stated that the company was reviewing the GST Council's order. "There has been a request from customers regarding the GST that was not included in the bill at the delivery point," the representative explained.

It is understood that meal delivery platforms are deliberating on a plan for execution within the specified time frame.

Meanwhile, the GST Council has resolved to cut the tax rate on fortified rice kernels used in government programmes from 18% to 5%.

Additionally, it has clarified several points. It has been clarified that Brewers' Spent Grain (BSG), Dried Distillers' Grains with Soluble [DDGS], and other similar residues classified under HS code 2303 are subject to a 5% GST.

Under heading 2106, scented sweet supari and flavoured and coated elaichi are subject to an 18% GST, whilst "Carbonated Fruit Beverages or Fruit Drink" and "Carbonated Fruit Beverages with Fruit Juice" are subject to a 28 percent GST and a 12 percent Cess.

According to the council, the distinction between fresh and dried fruits and nuts is being clarified in order to apply the GST rates of "nil" and 5%/12% appropriately.

On services, the council clarified that cloud kitchens/central kitchens fall under the category of' restaurant service' and are subject to a 5% GST without input tax credit, whereas ice cream parlours selling pre-made ice cream are subject to an 18% GST.