GST Council, chaired by the federal finance minister, may lower the tax on food delivery charges by e-commerce operators to 5% from 18%, CNBC-TV18 reported, citing sources.
The potential tax cut, which could take effect from Jan. 1, 2025, would not allow food delivery platforms such as Zomato and Swiggy to claim tax credits.
This comes as India’s tax department ordered Zomato to pay 8.04 billion rupees in taxes and fines for non-payment of certain taxes from 2019 to 2022.
