GST Fitment Committee Reviews Taxability of Delivery Charges by Food Delivery Apps

The GST Fitment Committee is reviewing the tax treatment of delivery charges by food delivery platforms like Swiggy and Zomato. The Directorate General of GST Intelligence (DGGI) issued notices arguing that delivery charges bundled with food supplies should attract an 18% GST rate. Zomato and Swiggy face GST demand notices amounting to ₹400 crore and ₹350 crore, respectively, for the period between July 2017 and March 2023. The review aims to address the legal ambiguity in GST classification under the CGST Act, 2017. The Fitment Committee, while advisory, could influence policy changes to provide a consistent tax framework. The matter may be escalated to the GST Council for a final decision, potentially impacting the cost structure for food delivery platforms and consumers.