Consumers ordering food online are likely to see a rise in delivery charges starting September 22, as the Goods and Services Tax (GST) Council’s latest reforms come into force. Under the revised framework, an 18% GST will be levied on delivery fees charged by platforms such as Zomato, Swiggy, and Blinkit, making food delivery slightly more expensive for end users.
Previously, delivery charges were treated as pass-through payments to gig workers, and GST was not uniformly applied. The new rules, issued under Section 9(5) of the Central GST Act, make platforms directly responsible for collecting and remitting GST on these charges.
Industry estimates suggest that Zomato’s average delivery fee of ₹11–12 may increase by ₹2 per order, while Swiggy’s ₹14.5 fee could rise by ₹2.6. Blinkit, which already includes GST in its delivery pricing, is expected to remain unaffected. Swiggy Instamart may see a marginal increase of ₹0.8 per order.
The financial impact on platforms is expected to be significant, with analysts projecting an additional annual tax burden of ₹180–200 crore for major players. Companies may pass on part of this cost to consumers or adjust delivery partner incentives to maintain margins.
Brokerage firms have noted that while the move may pressure short-term profitability, platforms could benefit from increased regulatory clarity and improved compliance. The festive season and broader consumption trends may help offset the impact.
The GST Council’s decision also resolves long-standing disputes over the tax treatment of delivery fees, potentially reducing litigation risks for platforms. However, state-level enforcement and retrospective claims may still pose challenges.
As the new rules roll out, food delivery platforms are expected to revise their pricing structures and communicate changes to users, ensuring transparency and continued service quality.
