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If you order food from Swiggy-Zomato, be prepared to spend more money, Finance Ministry's FAQ tells you..

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If you order food from apps like Zomato, Swiggy, and Magicpin, then this news is for you. From September 22, ordering food from these apps will become expensive. This will happen because from that day, 18% GST will be levied on the delivery charge. You will also have to pay 18 percent tax on the amount of goods you order on these apps.

The platform fee has already increased.

Even before the festive season, these companies have increased their "platform fee". You must be aware that apps like Swiggy and Zomato charge a platform fee from customers for ordering any goods, which is a kind of extra charge. This charge is taken on every order. Recently, Swiggy has increased its platform fee to Rs 15 in some cities, which also includes GST. Zomato has increased its platform fee to Rs 12.50, but GST will be charged separately on it. At the same time, Magicpin has also increased its platform fee to Rs 10 per order.

Now 18% GST on delivery charges

From September 22, the government will charge 18% GST on the delivery charges levied by these companies on customers. However, this tax will not be much. It is estimated that due to the imposition of 18% GST on delivery charges from September 22, Zomato users will have to pay about Rs 2 on every order, and Swiggy customers will have to pay Rs 2.6 extra.

Why is this tax imposed?

The Finance Ministry issued some questions and answers (FAQ) on Tuesday. It explains why GST is being imposed on local delivery services. The ministry said: "Local delivery services are taxable at 18%. If such local delivery services are provided directly by a registered person, GST @ 18% shall be payable. If the person providing the delivery service is delivering for an e-commerce operator (ECO) and is not registered, then 18% GST shall be payable by the ECO under section 9(5). If such local delivery services are provided by a registered person through an ECO, then GST @ 18% shall be payable by the supplier of the local delivery service."

What is the share price of Swiggy and Zomato

On Tuesday, Swiggy's stock saw a rise of more than three percent. It opened at Rs 245.30 on the BSE and went up to a high of Rs 438.30. Shares of Zomato or Eternal also rose about one percent on the BSE today. It opened at Rs 323.45 in the morning and went up to a high of Rs 326.30.

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