Quick Summary
State and central GST officials, forming the fitment committee, are reviewing the tax treatment of delivery charges levied by food delivery platforms like Swiggy and Zomato. This review follows a notice from the Directorate General of GST Intelligence (DGGI), which questioned the classification of delivery charges and their applicable GST rate. The DGGI, in its 2022 notice, argued that delivery charges bundled with food supplies should be treated as part of the food supply, attracting a higher
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FAQ :
The committee is reviewing the tax treatment of delivery charges levied by food delivery platforms such as Swiggy and Zomato.
The review was prompted by a notice from the Directorate General of GST Intelligence (DGGI) questioning the classification and GST rate applicable to delivery charges.
The DGGI argues that delivery charges bundled with food supplies should be considered part of the food supply and taxed at a higher rate of 18%.
Zomato has received GST demand notices amounting to ₹400 crore, and Swiggy has received notices for ₹350 crore for the period between July 2017 and March 2023.
No, the committee cannot overturn the DGGI's notices but can advise on policy changes to address classification issues.
The matter may be escalated to the GST Council for a final decision, potentially at their next meeting scheduled for December 21st.
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