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With 18% GST On Food Delivery, Will Your Zomato & Swiggy Orders Get Costlier?

As per the new revisions in Goods and Services Tax (GST), goods and quick commerce delivery fees now come under Section 9(5) of the Central GST Act, making them liable for 18% GST. Industry experts believe that this can put a dent in the profitability margins of platforms like Zomato, Swiggy, and Blinkit.

by Tashika Tyagi
With 18% GST On Food Delivery, Will Your Zomato & Swiggy Orders Get Costlier?

GST revisions during the 56th GST Council meeting have left many happy, but food delivery giants like Zomato, Swiggy, and Blinkit might not be celebrating. The Council has placed local e-commerce delivery services under Section 9(5) of the CGST Act, meaning delivery fees on these platforms will now attract an 18% GST. This has raised concerns that customers may end up paying extra for their next meal ordered online. Here’s all you need to know about it.

GST Revision On Food Delivery Fees

food delivery GST
Image Courtesy: Canav Pro/filadendron

According to NDTV Profit, Section 9(5) of the CGST Act states that if services are provided through an e-commerce platform, the platform (ECO) must pay the tax, even if it isn’t the actual supplier. This means food delivery and quick commerce platforms in India will now have to face 18% GST. Earlier, GST wasn’t always applied to delivery fees, as platforms like Zomato and Swiggy treated the fee as a direct payment to the delivery partner.

This means, up until now, these companies have avoided GST. They classified delivery fees as pass-through expenses instead of revenue. With the new revision, platforms will now have to pay 18% GST on delivery fees, irrespective of whether they recognise it as part of revenues or consider it as a pass-through. Industry experts believe that this can put a dent in the profitability margins of platforms like Zomato, Swiggy, and Blinkit. This will come into effect from September 22, 2025.

Also Read: GST Cuts On Hotels And Flights Set To Boost Domestic Tourism; Experts Call It “A Game-Changer”

What It Means For You

According to NDTV, while the impact of this revised food delivery GST is going to be small, it will be significant at scale. For Zomato, the order change is likely to go up by ₹2, while for Swiggy, it is going to be up by ₹2.6 per order. Just recently, Swiggy and Zomato increased platform fees in many cities. Currently, Zomato charges ₹12 for each order, while Swiggy charges ₹15.

Also Read: What Are Sin Goods & Why They Face A 40% Special Tax Slab Under GST Revision?

What are your thoughts on this food delivery GST? Let us know in the comments.

Cover Image Courtesy: Swiggy

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First Published: September 05, 2025 2:42 PM