Quick Summary
The GST department has reportedly issued summons to several restaurants listed on popular food delivery platforms such as Swiggy and Zomato. According to a report, the summons are related to the levy and reporting of GST on packaging charges collected from customers. GST Authorities Probe Packaging
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FAQ :
The GST department has issued summons to restaurants to investigate whether they have been properly levying and depositing GST on packaging charges collected from customers since January 2022.
Tax experts state that since packaging is a distinct supply, restaurants collecting the charge from consumers should ideally be paying GST on it.
Food delivery platforms argue that the onus lies with the restaurants. However, the GST law generally mandates that the service provider collecting the fee must remit the tax to the government.
Minister of State for Finance, Pankaj Chaudhary, stated that as of now, there are no plans to impose a 5% GST on food aggregators such as Swiggy and Zomato.
Restaurants and food aggregators are advised to review their tax treatment of packaging charges to avoid potential penalties and litigation.
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