Will online shopping make delivery expensive? A big statement from the government on the claim of 5% GST in the festive season

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It is being claimed on social media that the government has imposed a new Goods and Services Tax (GST) of 5% on e-commerce delivery services. In response to this claim, the fact check team of Press Information Bureau (PIB) says that this claim is false as no new GST has been imposed on e-commerce delivery services. Citing the Central Board of Indirect Taxes and Customs (CBIC), the PIB fact check team says GST on these services has been reduced from 18% to 5%.

Social media claims are false

CBIC said in a social media post that the claim made in the post is false and not based on facts. Delivery services, such as those offered by food apps, were earlier taxed at 18%. As recommended by the 57th GST Council meeting, the tax on these delivery services has now been reduced to 5%. A uniform 5 percent tax is now levied on all delivery services provided through e-commerce platforms. Therefore, no new tax is imposed. Instead, taxes have been reduced.

GST increased from 18 to 5 percent

The clarification comes amid claims that consumers will now have to pay a new tax on deliveries made through e-commerce platforms (including food delivery apps). However, the CBIC also clarified in a tweet on its official page that the change is a reduction in the existing tax rate and no new tax will be levied. The CBIC clarified that under the revised GST rates, delivery services offered through e-commerce platforms now attract a uniform tax of 5%, as against the earlier rate of 18%. The Income Tax Department has termed the new tax claim as false and incorrect on facts. Therefore, 5% GST should not be seen as an additional tax introduced before the festive season. Instead, there is a move to rationalize the existing GST rate on these services.

Halie Heaney

Halie Heaney is an accomplished author at SpeaksLY, specializing in international news across diverse categories. With a passion for delivering insightful global stories, she brings a unique perspective to current events and world affairs.

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