What is this 5% GST on food delivery and how would it impact companies like Zomato?

When the GST Council meets for its next meeting on 17th September, there is a strong likelihood that they may impose a 5% GST on supplies from restaurants. Since many restaurants are still outside the purview of GST, the Council plans to impose this levy on food order aggregators like Swiggy and Zomato. This proposal is likely to be discussed on Friday, but the good thing is that even if the change happens, it would be prospective.

The Council will also give adequate time to aggregators to make the adjustment. This move is expected to add nearly Rs.2,000 crore as revenues for government. The impact will be on the books of food aggregators like Zomato, Swiggy and Dunzo, but these costs are likely to be passed on to the customers so the impact on these aggregators will be only neutral.