“Breaking: Swiggy and Zomato Might Finally Stop Burning Your Wallet!”

 GST Council Considers Slimming Down Delivery Taxes!

Here’s the fresh scoop on the GST Council’s latest deliberations and what it means for your food delivery orders:

1️⃣ What’s Cooking?

The GST Council, chaired by India’s finance minister, is considering reducing the GST on food delivery charges by e-commerce operators like Zomato and Swiggy.

• 📉 Potential Reduction: From the current *18%* down to *5%*.

• 🍕 Impact: Your food delivery fees could become more palatable!

2️⃣ When Might This Happen?

If approved, the tax cut could take effect from January 1, 2025.

• 🗓️ Mark Your Calendar: Start planning your New Year feasts!

3️⃣ What’s the Catch?

Food delivery platforms would not be allowed to claim Input Tax Credits (ITC) under this new rate.

• 🧾 ITC Explained: It’s a mechanism that allows businesses to reduce the tax they’ve already paid on inputs.

• 🚫 No ITC: Platforms like Zomato and Swiggy might have to absorb some costs.

4️⃣ Why Now?

This proposal comes amid increased scrutiny of food delivery platforms by tax authorities.

• 💸 Recent Development: India’s tax department ordered Zomato to pay *₹804 crore* in taxes and fines for non-payment of certain taxes from 2019 to 2022.

5️⃣ What Does This Mean for You?

• 🎉 Potential Savings: Lower delivery fees could make your favorite meals more affordable.

• 🤔 Platform Strategies: Zomato and Swiggy might adjust their pricing or services to accommodate the changes.

6️⃣ Stay Tuned!

The GST Council’s decision is eagerly awaited.

• 📢 Keep an Eye Out: We’ll update you as more information becomes available.

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