CBIC discloses Tax breakdown for Online Food Orders after Consumer claims ‘37% GST’ charged

The Central Board of Indirect Taxes and Customs (CBIC) provided a breakdown of taxes levied on online food orders after a customer claimed he was charged 37% GST on a Zomato order.

“It is to clarify that a customer purchasing from an online platform such as Zomato will typically pay 5% on food, 5% on packing charges, 18% on platform fees, and 18% on delivery charges,” CBIC stated.

Recently, a case emerged in the media, a Zomato Customer Tweeted about that he was charged GST on a food purchased order beyond the actual rate.

He said in a tweet, “Dear @zomato @zomatocare can you tell me when @nsitharaman ji increased GST from 18% to 37% ?.” He also attached the order bill summary along with the tweet, where in the bill, it was clearly showing that on a bill of approx Rs.100, a GST of 37% i.e. Rs.37.53 was charged.

In response to this case, CBIC came to the front and issued a clarification on this matter.

CBIC wrote, “Dear @Vipinsri01 @FinMinIndia It is to clarify that a customer buying from an online platform like Zomato will normally pay 5% on food, 5% on packing charges, 18% on platform fee and 18% on delivery charges (which is not levied for gold card members). Please confirm whether you placed an order and if so, please share the invoice if you have any concerns regarding wrong billing.”