Replying to a question from Rajya Sabha member Golla Baburao, Chaudhary said that GST rates are set by the GST Council, a group made up of Union and state government representatives. Currently, restaurant services—whether ordered directly or through apps like Zomato and Swiggy—are taxed at 5% without input tax credit, except for restaurants in certain special locations.
By Poonam Behura April 1, 2025, 4:47:04 PM IST (Updated)
The central government is not planning to impose a new 5% Goods and Services Tax (GST) without input tax credit on food delivery apps like Zomato and Swiggy, Pankaj Chaudhary, Minister of State for Finance, clarified in Rajya Sabha on Tuesday, April 1, 2025.
Replying to a question from Rajya Sabha member Golla Baburao, Chaudhary said that GST rates are set by the GST Council, a group made up of Union and state government representatives. Currently, restaurant services—whether ordered directly or through apps like Zomato and Swiggy—are taxed at 5% without input tax credit, except for restaurants in certain special locations.
The question of taxing food delivery services separately was discussed at the GST Council’s 55th meeting on December 21, 2024. According to Chaudhary, “The GST Council recommended that the issue needs further examination.” This means no new tax will be added for now, and the matter is still under review.
Other services provided by these apps, like platform fees, are already taxed at 18%. Since no new 5% GST is being applied to delivery services at this time, there’s no additional cost to consumers yet.
First Published:
Apr 1, 2025 4:41 PM
IST
