In its 56th meeting on 3 September 2025, the GST Council announced that delivery charges by e-commerce and quick commerce platforms will now attract 18% GST.
This change will be effective from 22 September 2025.
Earlier, delivery services were exempted, but now they are included in the tax system.
Impact on Online Platforms
Companies such as Zomato, Swiggy, Blinkit, Zepto, Amazon, and Flipkart will now have to pay GST on every delivery charge collected.
Since delivery is a core part of their services, this new tax is expected to affect profit margins.
Industry experts believe that most companies will pass on the extra cost to customers instead of bearing it themselves.
How It Affects Customers
For customers, this means online orders will become costlier.
For example, if you order food worth ₹500, you already pay around ₹88 GST on food, along with platform and packaging fees.
Now, the delivery fee will also attract 18% GST, which will increase the final bill.
A senior food delivery executive told Indian Express, “We would have no other option but to pass on that hit to customers, so you can expect delivery fees going up, or even delivery partner earnings taking a hit.”
Why This Change Was Made
The GST Council recommended including “local delivery services” under Section 9(5) of the CGST Act.
This means e-commerce operators will be responsible for paying the tax.
The move aims to bring delivery services in line with other taxable services and create uniformity in the GST framework.
Who Will Be Most Affected?
Regular users of food, grocery, and quick delivery apps will feel the impact as their costs rise.
Premium or subscription users may not be affected much, as these plans often include delivery benefits.
For most customers, however, ordering online is set to become more expensive from September 22.
