From Swiggy to Foodpanda, online food delivery service firms face GST heat

Food delivery services are taxed at 18% which the restaurants have to pay

Online food delivery service companies like Swiggy are facing the heat from restaurants after the goods and services tax (GST) on eating outlets was cut to five per cent, from 18 per cent in November, and input tax credit provision was withdrawn.
 
Some restaurants have started charging higher prices on online food delivery platforms. Others are negotiating a commission cut with online food delivery partners to make up for the 3.5 per cent additional cost due to unavailability of the input tax credit (ITC) facility.
 
Swiggy, Zomato and Foodpanda provide online delivery services to restaurants at a commission