GST Council May Reduce Tax on Food Delivery Charges to 5%: Report

India’s GST Council, led by the federal finance minister, is reportedly considering lowering the tax rate on food delivery charges by e-commerce platforms from 18% to 5%, according to CNBC-TV18 sources.

If approved, the revised rate could be implemented from January 1, 2022. However, platforms like Zomato and Swiggy would not be eligible to claim tax credits under the new structure. This proposal follows a tax department directive requiring Zomato to pay ₹804 crore in taxes and penalties for alleged non-payment between 2019 and 2022.

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