Food delivery apps like Zomato and Swiggy will collect 5% GST from consumers instead of the restaurant they pick up orders from, Finance Minister Nirmala Sitharaman said Friday evening after a meeting of the GST Council in Lucknow.
At present these apps are registered as TCS, or Tax Collected at Source, in GST records.
Revenue Secretary Tarun Bajaj clarified that no new taxes were being announced and that the GST collection point was simply being transferred.
“Suppose you order food from the aggregator… now the restaurant is paying taxes. But we found some restaurants were not paying. We are now saying that if you order the aggregator will collect from the consumer and pay to the authorities instead of the restaurant doing this…There is no new tax,” he said.