Food delivery apps like Zomato and Swiggy would receive 5% GST from customers instead of the restaurants from where they pick up orders said the Finance Minister following a meeting of the GST Council in Lucknow on Friday. These apps are now recognized in GST records as TCS, or Tax Collected at Source. Revenue Secretary explained to media following the GST meeting that no additional levies were introduced, and that the GST collection site was just being moved.
Assume you place an order with the aggregator for food. The eatery is now required to pay taxes. However, they discovered that several establishments were not paying. Instead of the restaurant collecting and paying to the authorities, now they state that if you order, the aggregator will collect from the customer and pay to the authorities. He mentioned that an examination of some returns revealed that some eateries were evading taxes. The difference in taxable turnover for suppliers whose TCS was deducted by a delivery app was larger than the turnover stated by such suppliers, the analysis of returns submitted by delivery apps, and several Haryana restaurant services.
Because food delivery apps have huge supply quantities, the degree of evasion is thought to be significant. The powerful GST Council declared on Friday, among other important decisions, that petrol and diesel will not be placed under the GST framework at this time. The Council had examined the matter in light of a recent Kerala High Court ruling and determined that now was not the appropriate time to bring petroleum goods under the GST. The minister also announced that the GST on bio-diesel, which is blended with diesel by oil marketing corporations, has been cut from 12 to 5%.
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