Double Shock For Swiggy And Zomato Users: GST Hike On Food Delivery
Hyderabad, Sept 16 (Maxim News): From September 22, a new burden will be imposed on consumers ordering food through online food delivery platforms like Swiggy and Zomato. Due to the GST changes, 18 per cent GST will be implemented on delivery charges. While till now only delivery charges had to be paid, now additional tax will have to be paid on those charges. This will further increase the bill for each order.
While Swiggy has already increased its platform charges to Rs. 15 including GST in some cities, Zomato has started charging Rs. 12.50 MagicPin is charging a platform fee of Rs. 10 per order.
According to the guidelines issued by the Government of India, all local delivery service providers will fall under the 18% GST bracket. if the delivery service is provided directly by a registered person, he will have to pay GST, if the service is provided by a non-registered person through an ECO (e-commerce operator), the e-commerce operator will have to pay GST. if the service is provided through the ECO by a registered person, he will have to pay 18% GST. This new policy will become an additional burden on consumers. Adding tax again on the already increased platform charges will make the difference more noticeable even in small amounts. For example, users ordering food will have to pay an average of Rs. 2 extra if they order through Zomato and about Rs. 2.6 extra if they order through Swiggy.
Food delivery companies have until now mostly earned their income from food orders. But recently, it is known that they have been increasing platform fees and delivery charges to gain new revenue streams. This is directly affecting millions of online users. Users are expressing concern that it is now difficult to get both convenience and affordable prices at the same time, given the increasing charges. (Maxim News)
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