The Restaurant and Food Delivery Sector has sought to rationalize GST rates on home delivery of food items in Budget 2021.
At the time of the lockdown imposed to control the spread of Kovid-19 and thereafter the share of home delivery in Restaurant & Food Business (Restaurant & Food Business) has increased to 60 per cent as against 40 per cent. People associated with the industry say that GST payment of 5 percent in restaurants and 18 percent in home delivery on the same food item is not logical.
- January 17, 2021, 8:36 PM IST
Officials said that paying more than 13 per cent GST on the same food item in restaurants and ham deliveries is not logical. Founder and Managing Director of Fuja Foods Dibyendu Banerjee said that the online food delivery sector in India is growing at a very fast pace. Currently, this sector is worth $ 2.94 billion. It is increasing at an annual rate of 22 percent. However, due to the complications associated with GST, growth is creating obstacles.
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Delivery share increased by 20% in restaurant and food businessShiladitya Chaudhary, director of Plater Hospitality, said that at the time of the lockdown imposed to control the spread of Kovid-19 and thereafter the share of delivery in our business has increased to 60 per cent as against 40 per cent. We cannot increase the price. That is why more commissions have to be paid. This is affecting our profits. This situation is when our sales corona have reached the pre-crisis level. However, he hoped that when the vaccine reaches the common man in a few months, the people who eat out of the house will also reach the restaurant.