Gst on online food delivery: People often do online food orders when they feel hungry, but from September 22, pockets will have to be loosened for it. In fact, many important decisions were taken in the GST Council meeting held last week.
Under this, online food delivery and quick commerce platforms like Swiggy, Zomato, Blinkit, Zepto have been brought under the purview of 18 percent GST slab. That is, these platforms will have to pay GST on their services. In such a situation, now the question comes that how will companies manage this increased expenses, will the burden be put on customers?
Recently increased platform fees
The Economic Times, citing Morgan Stanley, has stated in its report that due to the new rule, Jomato’s food delivery business may cost about Rs 2 per order and about Rs 2.6 per order on Swigy. Currently, Jomato’s average delivery fee is Rs 11–12 and Swigy’s average delivery fee is Rs 14.5. Platforms like Jomato and Swigi are already facing increased costs. He also increased his platform fees recently to earn more profit during the festive season. Now questions are being raised on how companies will face the challenge of increasing the burden of GST.
Will the pressure increase on customers?
According to media reports, the company is currently assessing the increased expenditure on its operations and the impact on its profits. Now if this GST is put on customers, then of course the delivery charges will increase. Talking to the Indian Express, an official of the food delivery platform also said that we have no other option other than putting its weight on customers.
After the new rates are implemented from September 22, customers can approach dominos or other operators instead of ordering food from zomato or swigy. According to a report by the Indian Express, Dominos puts 5 percent GST with packaging charges on food audience. At the same time, online food delivery platforms will be charged 18 percent GST on delivery along with collecting platform fees including Rs 88 restaurant GST, Packing Charge and Rs 15 GST.
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