Archive · 5 Sep 2025
Zomato, Swiggy Face New GST Burden, May Impact Delivery Partners
The Indian government is now charging Zomato and Swiggy, the biggest food delivery apps, an extra 18% tax on the money they make from delivering food.
This could cost them a lot of money.
They're figuring out how to handle this new tax.
They might pass some of the cost to the people who deliver food, which could mean those delivery people make less money.
It's also possible that customers may see a rise in prices.
Zomato and Swiggy are subject to an 18% GST on delivery fees.
The combined additional tax burden is estimated at ₹180-200 crore.
Companies are considering passing some costs to delivery partners.
Potential impact could include reduced earnings for delivery workers.
Companies previously absorbed some delivery charges to boost order volume.
- Who
- Zomato, Swiggy, delivery partners, customers
- What
- Facing 18% GST on delivery fees
- When
- Ongoing
- Where
- India
- Why
- Following GST Council clarification
Delivery Partners
Zomato/Swiggy
Income Impact
Delivery Partners
Delivery partners may see a decrease in earnings.
Zomato/Swiggy
Companies are exploring ways to mitigate the financial impact.
- Tax Implemented
- 18% GST on delivery fees
- Affected Companies
- Zomato, Swiggy
- Estimated Tax Burden
- ₹180-200 crore combined
- Potential Impact
- Possible reduced earnings for delivery partners
Sources
Eternal, Swiggy hike platform fee; which stock should one buy?
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Eternal, Swiggy: JM Financial sees 'negligible' impact of 18% GST on delivery charges; explains how
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Swiggy, Zomato outlook strong despite 18% GST, say experts; Motilal Oswal remains bullish, sees 30% upside
Zomato, Swiggy Face ₹180-200 Crore GST Burden, Plan to Offset Cost By Paying Less To Delivery Workers
Swiggy Vs Zomato: What’s fueling Motilal Oswal’s bullish upgrade – Target prices inside
Zomato, Swiggy and other delivery platforms to face 18% GST: What it means for users
