The Finance Ministry on Saturday announced new rules under Goods and Services Taxes. And, the new rules under GST have affected the food Delivering apps like Swiggy, Zomato, and other food delivering apps.
NEW GST RULES
The finance minister Nirmala Sitharaman announced the new GST rules on 18 September, Saturday. The announcement’s made after the GST Council meeting by the Finance ministry. The new decisions were made to ease the Tax Administrations. And, to reduce the number of substantial Tax evasions seen in many restaurants in Haryana.
IMPACT ON FOOD DELIVERING APPS
The food delivering apps like Zomato and Swiggy will not collect a five percent GST or Goods and Services Taxes. These taxes would get collected from the consumers instead of the restaurants they pick their orders from. Presently these taxes get registered under the TCS (Tax collected under the sources) in the GST records
Revenue Secretary, Tarun Bajaj clarified that no new amount of taxes would get charged towards the consumers. He clarified that no new taxes were announced. And it’s done to ease the GST administration. Bajaj said, that the GST collection’s going to get transferred.
Bajaj explained that there are no new taxes and it’s done due to the analysis.
The Analysis shows that many of the returns implied tax evasions from many restaurants. This shows that the taxes filed by many of the food delivering apps. And many of the Harayana Restaurants showed a gap between the taxable turnover.
Bajaj added that there’s been a “Revenue Leakage” and this decision was made accordingly. He said that to prevent such kind of leakage shortly from unauthorized restaurants. We have shifted towards the food delivering apps to provide five percent of GST.
According to the tax estimates reports in two years, There’s been a loss of around 2000 crores alone in the food delivery system. And one of the major decisions under this GST council held on Friday was not to bring Petroleum products from GST.
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