News surfaced on social media that the government had imposed a 5% GST on online delivery ahead of Diwali. Customers were delighted to learn this, but now the government has revealed the truth.
Government reduces GST on online shopping.
These days, online shopping is a huge craze. It eliminates the hassle of going to the market and instead allows you to get things done from the comfort of your own home. Especially now, with Diwali approaching, online shopping is on the rise. Meanwhile, reports are surfacing on social media that the government has imposed a 5% GST on online shopping, meaning the government has reduced the tax on online delivery.
People were on edge after hearing this news. Because what could be better than the fact that the tax on online shopping has been reduced, and now they can shop to their heart's content!
But wait! Has the government really made such a decision? The government itself has now clarified this.
What is the truth behind this viral claim?
A video is circulating on social media claiming that the government has imposed a 5% GST on online delivery services ahead of Diwali. Customers were overjoyed to hear this news. However, the government has since revealed the truth and dismissed it outright.
CBIC India shared this video on the social networking site X (formerly Twitter). They captioned it, "The claim made in this post is false and factually incorrect. Delivery services, such as those offered by food apps, were previously taxed at 18%. As recommended by the 57th GST Council meeting, the tax on these delivery services has now been reduced to 5%."
He further wrote, "All delivery services offered through e-commerce platforms are now subject to a uniform 5% tax. Therefore, no new tax has been imposed. Rather, the tax has been reduced. We request you not to spread false news."
The government has reduced the tax.
It should be noted that the recent 57th meeting of the GST Council recommended reducing the rate for delivery services from 18% to 5%. This change would impose a 5% GST on certain services related to the delivery of goods through e-commerce platforms. This could include food delivery apps and related services associated with online shopping platforms.
