No Decision on Higher/Lower GST on Food Delivery as of Now: FM after GST Council Meeting
Currently, online food delivery services in India are subject to an 18% GST. This tax is levied on the total amount charged by food delivery platforms like Swiggy, Zomato,Domino’s and others. The tax applies to the delivery fee and the cost of food items ordered
The Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired the 55th meeting of the GST Council, in Jaisalmer, Rajasthan, today.There has been no decision on Higher or Lower GST on Food Delivery yet.Finance Minister Briefed the media persons about the Decisions taken during the 55th meeting of the GST Council. Union Finance Minister Nirmala Sitharaman asserted...
The Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired the 55th meeting of the GST Council, in Jaisalmer, Rajasthan, today.There has been no decision on Higher or Lower GST on Food Delivery yet.Finance Minister Briefed the media persons about the Decisions taken during the 55th meeting of the GST Council.
Union Finance Minister Nirmala Sitharaman asserted that there have been no decision on food delivery Tax.Thus Ending the speculation regarding GST on Food Delivery.
Currently, online food delivery services in India are subject to an 18% GST. This tax is levied on the total amount charged by food delivery platforms like Swiggy, Zomato,Domino’s and others. The tax applies to the delivery fee and the cost of food items ordered.
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The GST Council, consisting of finance ministers from all states and chaired by the Union Finance Minister, meets periodically to review and make decisions on modifications to the GST system. When considering a reduction in GST on online food delivery services, the Council will need to weigh the potential loss in tax revenue against the broader economic advantages.
Reducing GST could lead to a decrease in tax income from the food delivery sector. The Council must assess whether the potential increase in transaction volumes can compensate for this revenue loss.
A reduction in GST on food delivery could serve as an economic catalyst, driving consumer spending and offering much-needed support to the food service and hospitality industries.Thus Boosting the economy.
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Implementing a revised GST rate would require food delivery platforms to update their billing and tax collection systems. The Council must evaluate whether these platforms are prepared to handle the changes effectively. The participants included Union Minister for State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, Rajasthan and Telangana; the Finance Ministers of States/UTs, besides Secretary of Department of Revenue, Chairmen and Members of CBIC and senior officials of the Ministry of Finance
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