When a customer books a meal from the app or website, a commission ranging from 7.5% to 20% is charged from the restaurant instead. This charge is for the delivery of the order to the customer’s home.
Food delivery app can be included in restaurant service. The GST Council is inquiring about this. Here food delivery app means mobile apps like Zomato and Swiggy which deliver food to the customers. It is being considered in the GST Council that such an app should be included in the restaurant service.
Since these mobile apps fully serve the restaurant, they can be included in the same type of service. Swiggy and Zomato may not have any restaurant chain of their own or do not provide food service sitting in the restaurant, but all the facilities related to the restaurant are available at home. That too with online requests.
What did the fitment committee say?
Food delivery companies like Swiggy and Zomato are registered in e-commerce companies that do online business. The Fitment Committee of GST has made a proposal that if restaurant services are provided through the app, then GST should also be levied accordingly. Right now it is under consideration. Sources have given this information to a private business channel. Food is also delivered from websites like Just Eat and TinyOwl.
These website and mobile app companies have agreements with many different restaurants, whose food these food delivery companies deliver to the customers at home. Customers order food on the website or app and pay by credit or debit card or by cash on delivery. These payments are completely connected to the website or app.
how does work
When a customer books a meal from the app or website, a commission ranging from 7.5% to 20% is charged from the restaurant instead. This charge is for the delivery of the order to the customer’s home. Along with this, the app or website also takes a commission to put the name of any restaurant on its website. At the end of the month or week, money is paid through the website or app to the restaurant whose order has been taken by the app or website. Since customers do not have to pay the restaurant for the food but the app has to be given, so the app also later pays the lump sum money to the restaurant after deducting some commission.
what is zomato
Zomato is an Indian multinational company that orders food from home. This company was established in 2008. This company gives the details of the restaurant and the food present in it to the customers through its site and app. This app also has reviews about the restaurant, so that customers can know the quality of the restaurant’s food. The services of this company are present in more than 10,000 cities in more than 24 countries. Earlier the name of this company was Foodibe which was later changed to Zomato.
Also read: If you are troubled by SBI’s pension service, then message on this number, the complaint will be heard in minutes, money will be released