Is GST Mandatory for Swiggy?
It has been quite a while that people depend on online food platforms for their everyday meals.
Many restaurants have made their way to get listed with one of the most trusted online food business platforms known as Swiggy. They also give away free money to their new user when they use the Swiggy Referral Code of other users
Now, the government has made it quite clear that every type of business in the country will have to get through this Goods and Services taxes. This has affected the online food business as well.
Goods and Services Tax
GST, Goods and Services Tax, is an indirect tax that has replaced many separate taxes in the country, and now you do not have to pay separate taxes, but one single tax is known as Goods and Services Tax.
It has replaced many taxes such as excise duty, VAT, and similar taxes. This tax is though levied at different points of sale. It has applied to every business type in the country, and the food business is no exception.
GST has been applied to all online food businesses as well, and this has made a significant impact on their business. However, there is a limit on the respective tax if the service is made through your platform.
Till now, all the restaurants across the country would have been paying this Goods and Services Tax, rds, these online food platforms will also join their from now onwards group.
How are Food Delivery Platforms affected?
There are many such examples of online food delivery platforms such as Zomato, Swiggy, and many more.
These platforms are one of the most trusted platforms worldwide, and people place their orders now and then because of the quality of the food they provide and the quality service that their employees offer.
Now. GST is applicable as many states are close to each other, and inter-state deliveries are made.
Such examples are Gurgaon and New Delhi. These two places are close enough that deliveries can be made from one place to another, but also these places do come under different states or Union Territories.
For this, the government has made it clear that deliveries can be made inter-state, and GST will be applicable as Swiggy is just an online platform that is delivering food from authentic restaurants that are listed in its application.
GST Rates for Restaurants
Though GST is compulsory for every type of food business in India, the food sector is the one that has been affected in a significant way. However, the government has made it quite clear that not every restaurant has to pay the same amount under Goods and Services tax.
Each restaurant will pay its tax according to their earnings and the category they fit in. For example, if the restaurant is a small one and making a turnover of fewer than 50 lacs, it will have to pay 5% GST.
Similarly, those restaurants that are large and making a significant turnover, say, anything above 50 lacs, will be paying at least 12% tax for GST. The luxury restaurants that make significant turnover will be paying 28% tax for GST.
Also, GST provides a composition for all those restaurants whose turnover is less than 75lacs, and they might benefit from that. From Swiggy to FoodPanda, every online food business must pay its tax accordingly.
Registration Required by Restaurants
As of now, the e-commerce business is expanding day by day, and it made a significant impact on restaurants and every type of food business across the country. More so, it has been seen that now entrepreneurs are going in the direction of making this online platform a huge success and deliver their favorite food from any place to their home without making them wait.
In this way, the food business is expanding, and now the government has made it clear that each restaurant and food business will now undergo FSSAI registration as well as GST so that the quality of food and services can be maintained thoroughly.
Though GST is applicable according to the restaurant’s turnover, the FSSAI registration is mandatory for each type of restaurant, whether small or big, or the turnover it is making.
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