"The online food delivery sector in India has been growing by leaps and bounds. It is currently worth USD 2.94 billion and is growing at a CAGR of 22 per cent. However, the tax complications arising due to the GST is likely to pose a roadblock to this growth," said Dibyendu Banerjea, Fooza Foods Founder and Managing Director. He further shared that the high GST rate of 18 per cent on online food delivery service providers and ineligibility of credit of such GST charged to the restaurants have an adverse impact on the growth of the sector. Instead, a reduction in GST rates will make food costs more affordable and generate more employment in the industry.