Quick Summary
The 55th GST Council meeting, scheduled to take place on December 21 in Jaisalmer, Rajasthan, could bring significant relief to consumers ordering food via e-commerce platforms. Sources indicate that the Council is likely to discuss reducing the GST rate on delivery charges from the current 18% to 5%. If approved, this reduction would apply retrospectively from January 1, 2022, as per recommendations by the GST Council-nominated fitment committee. However, businesses may face restrictions on cl
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FAQ :
The 55th GST Council meeting is scheduled to take place on December 21st.
The GST Council is likely to discuss reducing the GST rate on food delivery charges from the current 18% to 5%.
If approved, the reduction could apply retrospectively from January 1, 2022.
Consumers could benefit from cheaper food delivery costs if the GST rate is reduced.
Businesses, particularly smaller platforms, might face challenges due to restrictions on claiming Input Tax Credit (ITC) for transactions taxed at the reduced 5% rate.
If the proposal is cleared, platforms like Zomato could see relief on recent GST demand notices for delivery charges, as the tax would be recalculated at the lower rate.
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