The GST Council on September 17 referred the issue pertaining to the tax to be levied on online food aggregators such as Swiggy and Zomato to the group of ministers, said West Bengal Minister Chandrima Bhattacharya.
Bhattacharya who is the Minister of State for Urban Development and Municipal Affairs attended the GST Council’s meeting on behalf of Amit Mitra’s.
The government has been working on a proposal to ask food delivery delivery apps to collect and deposit GST with the government, instead of what is currently done by the restaurants.
An official also said this had been done given that the states have some concerns on the matter.
Currently, online bills generated by food aggregators already have a tax component in it. However, according to people privy to the practices of these firms, this taxed amount is paid back to the restaurant partners who are then expected to pay this amount to the government.
This new amendment if implemented will ensure that the companies do not pay this to the restaurants but directly to the government.
The apps are currently registered as Tax Collectors at Source (TCS) under GST. As per reports, tax loss to exchequer due to alleged under-reporting by food delivery aggregators is Rs. 2,000 crore since the past two years.Internet Explorer Channel Network