Archive · 6 Sep 2025
Delivery Services to Face 18% GST Hike on E-commerce Apps
The Indian government decided to increase the Goods and Services Tax (GST) on delivery services.
Starting September 22nd, food delivery apps like Zomato and Swiggy, and quick commerce companies like Blinkit and Zepto, will charge 18% GST on their delivery fees.
This is likely to make deliveries more expensive for customers.
Companies had argued they shouldn't pay this tax, but the government clarified that they will.
The new rule will apply to all delivery services handled by e-commerce platforms.
GST on delivery services through e-commerce platforms will increase to 18% starting September 22.
The decision impacts food delivery apps and quick commerce companies.
Consumers are likely to face higher delivery fees due to the tax increase.
The GST Council clarified the taxability of delivery services.
Companies had contested paying GST on delivery charges, claiming they are only collecting on behalf of delivery workers.
- Who
- GST Council, E-commerce operators, Consumers
- What
- Increase in GST on delivery services
- When
- Effective September 22
- Where
- India
- Why
- Clarify tax ambiguity and increase revenue
E-commerce Operators
GST Council
Tax Liability
E-commerce Operators
Argued they were not liable for GST on delivery charges, stating they are collected on behalf of delivery partners.
GST Council
Ruled that e-commerce operators are liable to pay 18% GST on delivery services.
Impact on Consumers
E-commerce Operators
Anticipated that the tax would increase delivery costs for consumers, impacting order volume and potentially the earnings of delivery workers.
GST Council
Focused on clarifying the tax regulations and potentially increasing government revenue from the e-commerce sector.
- Event
- GST on Delivery Services Increase
- New GST Rate
- 18%
- Effective Date
- September 22
- Affected Companies
- Zomato, Swiggy, Blinkit, Zepto
- Impact
- Likely Increase in Delivery Costs
Sources
GST 2.0: MSME Hopes Of Cut In Labour Charges Tax Dashed
Will your food delivery get costlier after new GST reforms? Swiggy, Zomato brace for impact
GST 2.0: A reform that touches every Indian
GST 2.0: Detergents out of rate cut in miss for FMCG firms
Apparel industry raises concerns on increase in GST on higher priced clothes, fear rise of grey market
GST rationalisation on cement to lower infra project costs, boost cash flows: Industry players
FAPCCI defines GST reforms as a step towards ease of doing business
GST reform backlash: 13% inverted duty gap leaves Punjab’s core industries in distress
