GST Dept Probes Restaurants on Zomato, Swiggy Over Unpaid Tax on Packaging Charges

The Goods and Services Tax (GST) Department is reportedly probing restaurants listed on online food delivery platforms like Zomato and Swiggy over alleged unpaid tax on packaging charges. The GST authorities are examining whether restaurants should be levying and remitting GST on the amounts they charge customers for packaging. The contention likely revolves around whether packaging is considered an integral part of the food supply service and thus taxable, or if it should be treated differently. This investigation could have significant implications for restaurants and food delivery platforms, potentially leading to tax demands and changes in billing practices if the authorities find non-compliance. The outcome of this probe could also impact the pricing of online food orders for consumers.