wordpress blog stats
Connect with us

Hi, what are you looking for?

Swiggy and Zomato to absorb tax load carried by restaurants under new GST structure

In India, the taxation of digital services has grown with the explosion of internet access since the mid-2010s.

The Goods and Services Tax Council on September 17 recommended that food delivery apps like Swiggy and Zomato should be taxed instead of the restaurants that prepare and pack the food. The council also recommended that cab aggregators like Uber and Ola should be taxed: E Commerce Operators are being made liable to pay tax on following services provided through them transport of passengers, by any type of motor vehicles through it [w.e.f. 1st January, 2022] restaurant services provided through it with some exceptions [w.e.f. 1st January, 2022] — GST Council press release The move would essentially shift the burden of taxation from restaurants to the delivery company. It's not clear how this would work in practice, though, as depending on how formally established a restaurant is, it may already be paying taxes on food it is distributing through aggregators. Will such restaurants uniformly reduce prices, or will they pocket the extra revenue and charge differentially on online platforms? We'll find out starting January. The taxation of Uber and Ola is also going to be interesting to follow — as Inc42 reported, this tax is currently only charged on the part of the ride fare that goes to the company, and not to the driver. If the tax grows wider and potentially requires drivers to start paying out from their incomes, that could drive ridesharing prices up in India. Digital taxation in India In India, taxation of digital services has grown with the explosion of internet access since the mid-2010s. A blanket service tax…

Please subscribe/login to read the full story.
Written By

I cover the digital content ecosystem and telecom for MediaNama.

Free Reads

News

The court has also restrained Bloomberg from further circulating or publishing the article titled ‘India Regulator Uncovers $ 241 Million Accounting Issue at Zee'...

News

Deep fakes in India must now carry unique IDs, says new MeitY advisory.

News

While the orders upheld the original decision by Google, the report provides a break-up of the services for which the GAC issued its orders.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ