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Explained: Zomato & Swiggy to pay 5% GST, how does it affect customers?

Published on Jan 02, 2022 12:59 am IST

Online food delivery platforms such as Zomato and Swiggy will now be collecting, depositing tax at 5%. Food aggregators are expected to pay 5% GST on restaurant services that they provide. Earlier, restaurants themselves collected and deposited the tax to the government, but now, food delivery apps will be responsible for payments to the taxmen. The customers availing services of food delivery platforms will not be paying any new tax, the 5% GST would only be deposited through a different route to the government. Decision taken after the government found that several eateries listed on food delivery platforms were evading taxes. Restaurants will still need to collect GST for dine-in and takeaways.

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