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GST Council to weigh cutting tax on Swiggy, Zomato delivery fees to 5% from 18% at its Oct 8 meeting
GST Council is set to meet on October 8 to consider a uniform 5% GST on delivery fees charged by Swiggy and Zomato, down from the current 18%. It may also allow ITC for hotels, fitness centres and restaurants paying 5% GST.
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The numbers
Figures from NDTV Profit,
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Why it matters to operators and investors
Keep the current 18% delivery-fee GST as the base case in delivery-dependent targets such as cloud kitchens and restaurant chains, and run the 5% rate plus input tax credit relief as an upside sensitivity until the Oct 8 outcome and subsequent notifications clarify the rules.
What to watch next
- The council's Oct 8 outcome statement or press briefing on delivery-fee GST
- A formal notification fixing the 5% rate and its effective date
- Swiggy or Zomato announcing changes to customer-facing delivery fees
- Objections from state finance ministers, or the item being deferred
- A decision on input tax credit relief for hotels, fitness centres and restaurants
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- The GST Council is likely to take up the delivery-fee item alongside the input tax credit relief for hotels, fitness centres and restaurants, and may treat the two as one package.
- Swiggy and Zomato are likely to welcome an approval publicly. Expect them to say how much of the lower tax reaches customers and how much supports their own economics.
- Expect the tax authorities to issue notifications shortly after any approval, which would set the effective date for the 5% rate.
- State finance ministers may press for revenue-impact assessments before agreeing, which could slow or narrow the change.
- Restaurants and hotels paying 5% GST are likely to lobby for the input tax credit relief and to compare their treatment with the platforms'.
The source
First seen