General Discussions about Food Delivery Services

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There could be bad news for individuals who frequently order from online food delivery platforms like Zomato and Swiggy. Food delivery services offered by app-based e-commerce operators (ECOs) may soon attract Goods and Services Tax (GST).

 
There could be bad news for individuals who frequently order from online food delivery platforms like Zomato and Swiggy. Food delivery services offered by app-based e-commerce operators (ECOs) may soon attract Goods and Services Tax (GST).

Nothing will change for the end customer here.

Before the restaurants were charging GST on the orders, now the delivery partner will be charging instead.
 
The GST had recommended that food delivery apps should be made liable to pay five per cent tax. The finance ministry issued a circular to announce this will come into effect starting 1st January.

 
The conduct of food aggregators Swiggy and Zomato, which are facing allegations such as delayed payment cycle, imposition of one-sided clauses and exorbitant commission, "requires an investigation", the Competition Commission of India (CCI) ordered on April 4.

The fair trade regulator has asked its director general to conduct a detailed inquiry into the accusations and submit a report within 60 days.

 
Food delivery apps Zomato and Swiggy are facing technical glitches with many users across India not being able to order food on the two apps. People took to social media to tag the two online aggregators with their complaints. The snag appears to have been triggered by an outage in Amazon Web Services.

 
Come 1 July, food aggregators such as Swiggy and Zomato will be required to list the nutritional values and food allergens of all items displayed on the menu.

 
Sheethal ordered momos through Zomato on August 31, 2023, and paid Rs 133.25 through G-Pay. After 15 minutes of placing an order, she received a message stating her order was delivered. However, she said she neither received the order nor any delivery agent came to her house.

In the order, Eshappa K Bhute, president of the commission, ordered Zomato to pay Sheethal Rs 50,000 as compensation towards the inconvenience and mental agony caused to her and Rs 10,000 towards her litigation cost.

 
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