If you often order food online from Swiggy, Zomato, then there is an important news for you. From September 22, delivery costs will increase for customers who order food on these platforms. The reason for this is the new 18% GST charged on delivery fee. Meaning now you have to pay an additional tax along with delivery charge.
Apart from this tax, these companies have already increased their platform fees. That is, the weight of GST has also been added to the already increased charge. It will directly affect your pocket
Companies increased delivery charge
Swiggy has reduced its platform fee to Rs 15 in some cities with GST, while Zomato has started charging Rs 12.50 per order without GST. Magicpin has also increased its platform fee to Rs 10 per order. Due to these increase, now users of Zomato will have to pay around Rs 2 on every order and about Rs 2.6 more to Swigy users. These small increase charges together make the total bill significantly enlarged.
What did the government say?
The Finance Ministry has clarified the rules of imposing GST on local distribution services in its FAQ released on Tuesday, stating that 18% GST will be applicable to local distribution services. If this service is given directly by a registered person, he will have to give 18% GST. On the other hand, if such services are not registered by a person through e-commerce operator (ECO), then GST will be payable by ECO. And if this service is given through ECO by the registered person, then that registered person will have to give 18% GST. This means that people who take food to the house have to be installed directly or GST through ECO (Electronic Commerce Operator).
Impact of increasing charges
In the last few months, food delivery companies have opened new avenues of their profits by increasing the platform fee. Earlier they used to earn only on food orders but now they are earning additional income by mixing delivery charge and platform charge. The rising prices of food delivery will affect the pockets of millions of users. Now in such a situation, it is to be seen whether both convenience and affordable price for the customer will be able to remain together.