Starting September 22, 2025, customers ordering food or groceries online may have to pay more, as the GST Council has decided to apply 18% GST on delivery charges.
This was announced during the 56th GST Council meeting held on September 3, 2025.
Until now, delivery charges were not taxed, but this change brings them under the tax system, just like other services.
Impact on Food and Quick Commerce Platforms
Online platforms like Zomato, Swiggy, Blinkit, Zepto, Amazon, and Flipkart will now be required to pay 18% GST on all delivery charges collected. Since delivery is a major part of their business, this new tax will likely affect their profit margins.
Industry experts believe that most companies will pass this extra cost on to customers, rather than bear it themselves.
How Much Extra Will You Pay?
If companies shift the tax to customers, your online food bill may go up. For example:
A food order worth ₹500 already includes around ₹88 as GST on food.
On top of that, platforms charge delivery fees and packaging costs.
Now, with 18% GST added on the delivery fee, the final bill will increase further.
Why This Tax Change?
The GST Council has now included local delivery services under Section 9(5) of the CGST Act. This means that e-commerce platforms themselves will be responsible for collecting and paying this tax.
The aim is to ensure uniformity in taxation, by treating delivery services like other taxable services.
Who Will Be Affected the Most?
Regular users of food and grocery apps are likely to feel the price hike.
Those with premium subscriptions (like free delivery or bundled offers) may not see much change, since their plans already cover delivery costs.
But for the majority of users, online food and quick delivery orders will become noticeably more expensive.
