Starting in 2025, delivery charges on popular food and grocery platforms such as Zomato, Swiggy, and Blinkit will attract 18% GST. This move has implications for customers, restaurants, and the overall food delivery ecosystem in India.
What’s Changing
GST on Delivery Fees: Earlier, delivery fees were often unbundled or taxed differently. Now, a uniform 18% GST will apply on all delivery charges.
No Impact on Food Price: The GST applies only to delivery charges, not the actual food or grocery price.
Platform Transparency: Apps are expected to show GST-inclusive charges, ensuring clarity for customers.
How It Affects Consumers
Slight Increase in Total Bill: Delivery fees will now be higher due to GST, though food prices remain the same.
Awareness of Charges: Customers may see a clear breakdown of base delivery fees and GST on invoices.
Impact on Low-Cost Orders: Small orders with minimal delivery fees will experience a proportionally higher GST impact.
Impact on Restaurants & Platforms
Restaurant Margins: The tax applies to delivery fees collected by the platform, so restaurants may see minimal direct impact, but commissions may adjust.
Platform Revenue: Companies like Zomato, Swiggy, and Blinkit may revise pricing structures to accommodate GST, especially for low-margin orders.
Compliance & Transparency: Clear taxation ensures platforms are GST-compliant, reducing regulatory risks.
Key Takeaway
The imposition of 18% GST on delivery charges ensures tax uniformity but slightly raises costs for customers. Awareness of this change will help users plan food and grocery expenses more effectively.
FAQs
Q1. Will the GST apply to food or grocery prices?
No, the 18% GST applies only to delivery fees, not the cost of the items.
Q2. How much extra will customers pay?
The extra amount depends on the delivery fee. For example, a ₹50 delivery fee will incur ₹9 GST.
Q3. Will restaurants be affected by this GST?
Restaurants may see minimal impact, but platform commissions or fee structures could adjust.
Q4. Why is GST applied on delivery fees now?
To ensure uniform taxation and improve compliance across food and grocery delivery platforms.
Q5. Will this change be visible on the app?
Yes, apps will likely display GST-inclusive delivery charges for transparency.
Published on : 5th September
Published by : SMITA
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