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Food aggregators to collect 5% GST beginning Jan 1

Food aggregators to collect 5% GST beginning Jan 1

Food aggregators like Swiggy and Zomato will have to collect and deposit tax at 5 per cent rate beginning Saturday, a move which will widen the tax base as food vendors who are currently outside the GST threshold will become liable to GST when provided through these online platforms. Currently, restaurants registered under GST are collecting and depositing the tax.

Also, cab aggregators like Uber and Ola will have to collect 5 per cent Goods and Services Tax (GST) for booking 2 and 3 wheeler vehicles effective January 1. Also, footwear irrespective of prices will attract 12 per cent tax from Saturday. These are among the many changes in the GST regime that have come into effect in this new year 2022.

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