Get ready to pay more to Swiggy, Zomato

Hyderabad: If you are a food lover or regularly order food online, you are going to feel the pinch when you place your next order with food aggregators such as Swiggy or Zomato. Effective January 1, food aggregators will have to collect and deposit tax at five per cent, as food vendors who are currently […]

Hyderabad: If you are a food lover or regularly order food online, you are going to feel the pinch when you place your next order with food aggregators such as Swiggy or Zomato.

Effective January 1, food aggregators will have to collect and deposit tax at five per cent, as food vendors who are currently outside the GST threshold will become liable to GST when provided through these online platforms.

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If you paid these aggregators Rs 500 for your favourite biryani earlier, your bill will now go up to Rs 525.

The five percent GST requirement will be in addition to the existing 18 per cent GST that platforms need to pay for offering delivery services through their platforms.

The tax will be applied to the price of the food item that platforms are delivering to customers.

The GST amendments are likely to impact end-consumers as cost of ordering from smaller restaurants, which were hitherto outside the GST ambit, will go up if ordered through online food aggregators.

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