No New GST on Food Delivery Services: Government Clarifies Taxation Policy
2025-04-01
CNBCTV18
The Ministry of Finance has confirmed that there will be no new Goods and Services Tax (GST) on food delivery apps, such as Zomato and Swiggy, for now. According to the Minister of State for Finance, GST rates are determined by the GST Council, comprising Union and state government representatives. Currently, restaurant services, including those ordered through food delivery apps, are taxed at 5% without input tax credit, providing relief to consumers. The taxation policy aims to promote fair and transparent pricing in the food delivery sector, with popular food delivery services continuing to operate under existing tax rates. Online food ordering and meal delivery services remain unaffected by the GST Council's decision.
