On February 1, 2021, Finance Minister Nirmala Sitharaman will present the Union Budget at 11 am. Industry representatives said that to promote this sector of three billion dollars, it is necessary to rationalize the GST rate.
13% higher GST for home delivery
Officials said that the goods on which customers give GST at the rate of five per cent when they come to the restaurant and eat, they have to pay 13 per cent more GST when the same material is delivered to the home or office. Fooja Foods founder and managing director Dibyendu Banerjee said, ‘The online food delivery sector in India is growing at a very fast pace. It currently stands at $ 2.94 billion and growing at an annual rate of 22 percent. However, tax-related complications are inhibiting the growth path.
60% delivery share after lockdown
Shiladitya Chaudhary, director of Plater Hospitality, said, “The delivery share in our business has increased to 60 per cent from 40 per cent after the lockdown due to Covid-19. Since, we cannot increase the price, so more commissions have to be paid. It is impacting our profits. This is when our sales have reached the pre-Covid level. However, he hoped that when the medicine reaches the common man in a few months, the people who eat out of the house will also reach the restaurant.
It is known that the fifth session of the seventeenth Lok Sabha is going to start from January 29 and the session is likely to conclude on April 8. The President will also address both the Houses of Parliament simultaneously at 11 am before the House begins.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.