Zomato, Ola, Swiggy, Uber to come under tax ambit from today

New Delhi : Food aggregator companies – Zomato and Swiggy will now have to pay the tax at five per cent from today onwards. Till date, only restaurants registered for GST had to collect and deposit the tax.

Also, cab aggregators like Ola and Uber will have to collect 5 per cent Goods and Services Tax (GST) for booking 2 and 3 wheeler vehicles effective January 1. Also, footwear irrespective of prices will attract 12 per cent tax from today.

This is among the changes announced by GST Council recently.

Also to tackle evasion, the GST law has been amended to state that the input tax credit will now be available only once the credit is appearing in GSTR 2B (purchase return) of the tax payer. Five per cent provisional credit, earlier allowed in GST rules, will not be permitted post January 1, 2022.

EY India Tax Partner Bipin Sapra said "this change will have an immediate impact on working capital of tax payers who are currently availing credit of 105 per cent of matched credit. The change will also mandate industry to validate that the procurements are made from genuine and compliant vendors."