Connect with us

News

Ordering food on Swiggy and Zomato can be expensive

Published

on

Swiggy

HIGHLIGHTS :

  • The rules will be applicable from the new year i.e. January 1, 2022.
  • Restaurants may charge more for orders made through the app
  • This can have a direct impact on the consumers

Ordering food from platforms like Swiggy and Zomato can quickly become costly. These food aggregators have been directed to pay 5% GST on behalf of all restaurants on the cooked food ordered through their platform. This rule will come into effect from the new year i.e. January 1, 2022. Experts believe that this update of the Finance Ministry will have an impact on both consumers and small restaurants. The GST Council in its 45th meeting in September had recommended payment of GST by the restaurants onboard for food delivery platforms including Swiggy and Zomato. Earlier this month, the Finance Ministry issued a circular stating that the new rule will come into effect from January 1.

PS Plus free PS5 and PS4 games for January 2022: Dirt 5 and more

The rules will be applicable from the new year i.e. January 1, 2022.

Under this update, food aggregators will have to collect and deposit GST from all the restaurants on their platform. This means that food aggregators will have to maintain a separate GST entry for each order they receive from the restaurant. To comply with this arrangement, these platforms will require additional resources, which will increase their cost. It is to be noted that 5% GST will be on top of the existing 18% GST.

Restaurants may charge more for orders made through the app

Deloitte India partner S. Mani said consumers may see an increase in their e-com food bills from January 1. The compliance load of e-commerce food operators is also expected to increase.

Due to this change, small restaurant owners and food shops will have to pay 5% GST on all orders received from the online platform. This may affect their earnings. Because of this, he can charge more on orders made through Swiggy and Zomato apps. This will have a direct impact on the consumers.

A tax expert told Gadgets 360 that small restaurant owners who come under GST have annual revenue less than Rs 40,00,000. They need not pay GST in normal scenario.

Also Read :

WhatsApp users can now check bank balance using Payments feature, here’s how

Swiggy, Zomato orders to cost more from Jan 1; check by how much your food orders could get expensive

Click to comment

Leave a Reply

Your email address will not be published.

Copyright © 2020 - 2021 TechZimo.com, All rights reserved.