New Online Local Taxes Could Affect Home Delivery Orders

1. The government is considering imposing a new online tax on anything you buy on the internet. Following calls from some high-street businesses to "rebalance the tax system" Visit: https://qatar.desertcart.com/ Follow us on

2. between online and in-store retail by funding a reduction in business rates for the retail sector, the online shopping sales tax would see a levy placed on online purchases in the form of a tax that would be applied to online purchases. While in theory the tax would only be payable by consumers, in practice, you could expect that any goods that are sold by high-street businesses (which sell almost exclusively on the internet) will have to pay it. A proposal to make online order home delivery companies like Zomato and Swiggy accountable for collecting and depositing the 5% GST that is imposed on food with the government as of January 1 has been accepted by the GST Council. As of the first of the year, food delivery apps will be the ones responsible for collecting and remitting 5% of the Goods and Services Tax (GST) to the government on behalf of restaurants for deliveries done via the platforms. This responsibility transfer, which was suggested by the government and accepted by the GST Council on Friday, is intended to bring a number of eateries that have previously evaded paying online shopping taxes into compliance with the GST. The proposal of the GST Council, which was approved on Friday, also aimed to bring the delivery services under the tax net; however, it determined that since the customer does not directly avail of the services of a delivery executive, nor do they have the choice of which delivery executive services them, the responsibility for paying the online shopping tax rate on delivery services will lie with the food-delivery apps. The proposal was approved on Friday. The Current State of Affairs with Collecting GST The Goods and Services Tax (GST) was once collected from clients via food delivery services and then remitted to the respective eateries. As a result, restaurants were required to pay the tax to the government after first obtaining GST from the company. Currently, GST records show that these applications are registered as TCS, which stands for Tax Collected at Source. Visit: https://qatar.desertcart.com/ Follow us on

3. When the modifications are finally put into place for the new online sales tax law on January 1, 2022, the firms that transport meals to clients will be responsible for collecting online shopping sales tax from consumers and remitting it to the appropriate authorities on the restaurant's behalf. Why Would You Give Delivery Apps The Responsibility? The ruling comes after the GST fitment committee put out the suggestion that e- commerce operators should be responsible for paying the online shopping tax that they have earned from restaurant services. The authorities had seen that a number of eateries were avoiding paying taxes despite the fact that those taxes were being collected from the customers. Hence, a new decision has been made to prevent the eateries from avoiding paying taxes. So now, if you would give an order to one of these online order home delivery apps, they would be responsible for paying the GST taxes that they have collected from you, which in turn have been to your benefit. What Will Be Different Once This Is Put into Effect? At the moment, if a consumer gets food, say, from Restaurant A using Swiggy or Zomato, the food delivery platform will collect the 5% tax on food from the customer and then pass it along to Restaurant A. However, the government thinks that a number of restaurants have not filed their tax despite the fact that these restaurants have significant levels of revenue. As of the first of the year, therefore, the apps that transport meals will be responsible for collecting the new online tax on behalf of the restaurant and for depositing it on their behalf. As a consequence of this, restaurants, just like others who engage in online commerce, will be required to register their businesses with the government. Visit: https://qatar.desertcart.com/ Follow us on

4. What Effects Will It Have on the Various Entities? Customers will not be affected by this new regulation since there will be no additional costs and there will be no new taxes. The only difference that this new regulation has brought about is in the location where taxes will be collected. Customers will still be responsible for paying GST at the same rate of 5% that they were previously responsible for paying. This new law for the Goods and Services Tax (GST) would have an effect on smaller restaurants, particularly those with annual revenue of less than 20 lakh rupees. Previously, these restaurants were exempt from the need to register for GST. A further compliance burden will be placed on the majority of restaurants as a result of this new rule, as they will be required to keep two separate accounts in the future: the first account will be used for their regular business, and the second account will be used for business conducted through Zomato or Swiggy. In addition, since the GST Council is somehow treating Zomato and Swiggy like restaurants, these services are likely to see an increase in their expenses for GST registration. This would place an extra compliance burden on food online order home delivery platforms, which will require them to collect and pay taxes on behalf of the eateries as well as keep additional records. Visit: https://qatar.desertcart.com/ Follow us on

5. The tax will be collected at the final point of delivery by online meal delivery platforms such as Swiggy and Zomato, and they will pay the GST on restaurant services at a rate of 5%. The Goods and Services Tax (GST) will no longer be collected from eateries by meal delivery services; rather, it will be collected directly from customers. On the other hand, there won't be much of a change in the bills that end consumers get. The new regulations have changed, but not for customers. They intend to be more oriented towards order home delivery and restaurants. https://qatar.desertcart.com/ Follow us on