Starting September 22, 2025, every food delivery you order from Swiggy, Zomato, or Blinkit will carry an extra 18% GST on the delivery service. That means your favorite meals at your doorstep will cost more than they do right now.
The new tax rule doesn’t just touch customers. It changes the way online businesses and restaurants must handle billing, pricing, and compliance.
You already know how sensitive people can be to even small price changes. I’ve seen it in my own experience working with online sellers.
A small fee increase can make customers think twice about placing that late-night burger order or adding an extra snack. That hesitation can cut into profits if you don’t plan ahead.
For online businesses, this is both a challenge and a chance to rethink the way you operate. Some sellers will adapt faster. Others will feel the squeeze. The difference lies in how prepared you are to handle this shift in costs, compliance, and customer expectations.
What Is the New 18% GST Rule for Food Delivery Services?
Until now, GST applied mainly to the food you ordered, while the delivery fee had its own mixed treatment across states and providers. The new rule clears the confusion by putting delivery services directly under GST at a uniform rate.
This change means that anytime a customer pays for a delivery service, GST gets added to that charge. For example, if the delivery fee shows ₹50, the app will now add ₹9 as GST, making it ₹59 in total. Restaurants, aggregators, and small sellers who list on these apps will need to update their systems to reflect this extra cost.
You can treat the new GST as a burden, or you can use it as the push to clean up your billing, rethink your offers, and connect with your customers in smarter ways.
I’ve worked with online sellers who once ignored small add-on charges because they seemed too minor to bother about. Over time, those “minor” fees became deal breakers for their customers.
With GST now tied directly to delivery, ignoring the impact could cost you returning buyers. Staying ahead with accurate billing and clear communication will help you keep trust intact.
Why Did the Government Implement GST on Delivery Services?
The government’s decision to apply 18% GST on food delivery services comes down to creating uniform rules and boosting revenue. Delivery apps operate across India, yet until now, different states treated delivery charges in different ways.
That made compliance tricky and often confusing for both the platforms and the sellers using them. By placing delivery charges clearly under GST, the system becomes standardized.
Another reason is revenue. Online food delivery has exploded over the last few years. Millions of daily orders mean delivery services generate massive amounts of money.
Taxing them under GST ensures the government collects its share from this fast-growing sector. Officials see this as a way to bring fairness, since restaurants and dine-in services already fall under strict GST rules.
I’ve seen how unclear tax structures create problems for sellers. A client I worked with once lost sales because his invoices confused customers with odd surcharges.
Once we fixed the billing and explained the charges clearly, his sales bounced back. This move by the government aims to prevent that kind of confusion on a national scale.
How Will This GST Impact End Consumers?
Customers will feel the change right away. A delivery fee that once cost ₹50 will now show as ₹59 after GST. Small amounts like this add up quickly when someone orders multiple times a week. Over a month, even casual users will notice their expenses climbing higher than expected.
Higher delivery costs may also change ordering habits. People may cut down on small, frequent orders and instead place larger ones to make delivery “worth it.”
Some might skip delivery altogether and pick up food directly from restaurants. I’ve done this myself when delivery charges felt too high compared to the value of the meal.
For apps like Swiggy and Zomato, this could mean fewer impulse orders late at night or during office breaks. Customers often buy snacks or single meals when delivery feels cheap.
With GST raising costs, those quick orders might drop. That shift will affect not just the apps but also the restaurants that depend on them for steady sales.
How Will It Affect Online Businesses and Restaurants?
Restaurants and small food businesses will need to adapt fast. The added GST raises the overall cost of delivery, which can reduce order volume.
For businesses that depend heavily on aggregator apps, fewer orders can create a noticeable dip in revenue. Larger brands may absorb the cost, but smaller outlets often cannot take that hit without adjusting their pricing.
This change also increases the need for better billing systems. Every invoice must now show GST on delivery charges, which adds more work for restaurants that already juggle compliance. I’ve seen small sellers struggle to manage GST filing because they tried to do it manually.
Errors led to fines, which made the situation worse. Setting up proper tools and training now will save businesses time and money later.
Partnerships with delivery apps will also feel different. Restaurants that once saw aggregators as pure growth channels must now weigh the costs of higher customer hesitation. I’ve worked with businesses that used loyalty rewards to keep customers ordering despite higher delivery fees. Those who acted early retained sales, while others waited too long and lost regulars to competitors.
Strategies for Businesses to Prepare and Thrive
Raising prices isn’t always the best first step. Customers notice even a small increase, and some may leave. Instead, look at ways to spread the cost without scaring buyers away.
Many restaurants use loyalty programs where repeat customers earn discounts or freebies. These small perks help soften the impact of higher delivery fees.
Another option is to build a direct ordering system. I’ve seen businesses set up their own websites or WhatsApp ordering channels to cut down on aggregator fees. Even if only a fraction of customers switch to direct orders, the savings can cover the GST hit. Offering free delivery within a short distance or giving first-time discounts also encourages buyers to order directly.
Bundling items works too. Instead of promoting single meals, highlight family packs or combo deals that give better value. I once helped a small café reframe its menu around meal bundles.
Customers ordered less frequently but spent more per order, which balanced the books. With GST raising costs, smart packaging of meals can make your offers look more attractive.
Comparison with International GST/VAT Practices on Delivery
India is not the first country to bring delivery services under a clear tax structure. In the UK, delivery charges often fall under the same VAT rules as the food itself. That means customers already expect to pay a little more when they order through apps.
Australia applies a Goods and Services Tax across most delivery platforms too, which makes the model familiar to both consumers and sellers.
A small fee increase can make customers think twice about placing that late-night burger order or adding an extra snack.
The European Union also has a history of applying VAT on delivery-related charges. The rates differ by country, but the system ensures consistency and proper revenue collection. These examples show that India is moving in line with global standards rather than creating a completely new path.
I remember speaking with a seller who expanded from India to Australia. He told me that customers overseas rarely complain about taxes on delivery since it’s already the norm. His main challenge was updating systems to stay compliant.
That’s the same adjustment Indian businesses face now. Once it becomes standard practice, both sellers and buyers will treat the extra charge as part of normal pricing.
Expert Insights on the Future of Online Food Delivery in India
Industry watchers believe the GST move will reshape how people order food in India. Some predict a dip in spontaneous, low-value orders as customers become more cost-conscious. Others see long-term stability once buyers adjust to the new norm.
Reports from trade groups point out that organized players and restaurants with efficient systems will gain an edge, while small, unprepared sellers may struggle.
Analysts also expect growth in subscription-based models. Delivery apps could push monthly or yearly plans that reduce delivery costs for frequent users.
Restaurants might also roll out memberships offering free or discounted delivery. I’ve seen smaller cafés test these programs before, and regulars loved the predictability. A structured membership often locks in loyal customers, even when prices rise.
Experts agree that innovation will separate survivors from those left behind. Businesses that experiment with packaging, pricing, or direct ordering systems will adapt faster.
Those that wait and hope customers ignore higher fees may face sharper drops in sales. From my own work with sellers, the businesses that act early always fare better than those that hold back.
Step-by-Step Guide for Businesses to Stay Compliant with GST
The first step is registration. If your business turnover crosses the threshold set by the government, you must register for GST. The process happens online through the official GST portal.
Once approved, you’ll receive a GSTIN that links directly to your invoices and tax filings. Without it, you risk penalties and loss of credibility.
Next comes updating your billing system. Every invoice must clearly show GST on delivery charges starting September 22, 2025. Restaurants using aggregator apps will need to check if the platform updates invoices automatically.
For those who handle direct orders, it’s best to use accounting tools that generate GST-compliant bills. I’ve seen sellers try to manage this with manual records, and mistakes often led to fines. Proper software saves stress and money.
Finally, maintain accurate records and file returns on time. The GST portal allows you to upload invoices, claim input tax credit, and file returns monthly or quarterly.
A friend who runs a small café once shared how he set aside an hour every Sunday just to update invoices and receipts. That simple routine kept him compliant and reduced the year-end rush. Consistent record-keeping is the easiest way to avoid problems later.
FAQ Section
Is GST mandatory for Swiggy in India?
Yes, Swiggy must charge GST on delivery services starting September 22, 2025. The 18% tax applies to every delivery fee listed on the app. Customers will see the GST line clearly on their bill. Restaurants and sellers working through Swiggy must also align their invoices with this rule.
I once worked with a restaurant partner on Swiggy who ignored early compliance. Within a month, the mismatch in bills created disputes with customers. Fixing that mistake cost more than doing it right the first time.
How to check GST details?
You can check GST details directly on the official GST portal. Enter the GSTIN (GST Identification Number) in the search bar, and the system shows business name, registration status, and filing history. Sellers should always confirm the GSTIN before entering it into their invoices.
I make it a practice to double-check client GSTINs before preparing content that involves billing references. Small steps like this prevent costly errors.
How to file GST online?
Filing happens on the GST portal after logging in with your GSTIN. You need to upload invoices, check input credit, and submit your return under the correct form (GSTR-1, GSTR-3B, etc.). Payments also happen through the portal using online banking or authorized methods.
I know a business owner who used to delay filing because it felt complex. Once he set a fixed date every month, filing became a routine that kept him compliant without stress.
How to check GST input in GST portal?
Input tax credit (ITC) helps businesses reduce their tax liability by offsetting taxes already paid on purchases. On the GST portal, head to the ITC section after logging in. You’ll see eligible credits tied to your invoices.
Taxing them under GST ensures the government collects its share from this fast-growing sector.
Restaurants and sellers must claim ITC correctly to avoid paying more than required. A café owner I worked with once lost money because he skipped input claims for several months. Once corrected, his tax bills dropped sharply.
Will food prices increase after 18% GST?
Yes, food delivery prices will rise because the GST adds to the delivery fee. A ₹50 fee will now show ₹59. Customers who order often will feel the pinch more than occasional users. Many will adapt by grouping orders or seeking value deals. Sellers need to prepare for this shift by offering bundles or direct ordering perks.
Does GST apply to dine-in restaurants in 2025?
Yes, dine-in services still carry GST. The rates depend on the type of restaurant and whether it serves alcohol. The 18% GST discussed here applies specifically to delivery services from aggregators. Restaurants that manage both dine-in and delivery must handle both sets of tax records carefully.
Can restaurants claim input credit on delivery GST?
Yes, restaurants can claim input tax credit if they meet the eligibility rules. This allows them to offset part of the GST they pay. Proper invoices and accurate records are required. Skipping ITC claims means paying more than necessary. I’ve helped sellers who thought ITC was optional, but once they started claiming, their effective tax burden dropped.
How does GST affect small businesses in India?
Small businesses face tighter margins with the added tax. Higher delivery costs may lower sales if customers hesitate. At the same time, compliance takes more effort and knowledge. Many small sellers will need training or software to manage filings.
I’ve seen cases where a lack of preparation hurt growth. The ones who invested in learning GST compliance early stayed ahead of competitors.
What happens if a business does not comply with GST changes?
Non-compliance can lead to penalties, blocked listings on aggregator apps, or even legal action. Apps like Swiggy and Zomato may also suspend sellers who fail to show proper GST details.
Beyond penalties, it damages customer trust when invoices don’t match legal standards. From my own projects with sellers, fixing compliance issues late always cost more than preparing early.
Why Early Action Matters More Than Complaints
The 18% GST on delivery services will feel heavy for both customers and businesses at first. Some will complain, and others may wait for things to return to “normal.” But waiting rarely helps. The businesses that prepare early will not just survive this change, they will use it to sharpen their systems and win customer trust.
From my own experience working with online sellers, I’ve noticed one pattern again and again. Those who act before the pressure builds always come out stronger. I once advised a small café to set up a simple loyalty program before a new fee structure hit their area.
Competitors hesitated, and by the time they scrambled, his regulars were already locked in. That single move kept his orders stable while others saw sharp drops.
You have the same choice now. You can treat the new GST as a burden, or you can use it as the push to clean up your billing, rethink your offers, and connect with your customers in smarter ways. In my view, the sellers who take control today will be the ones still thriving a year from now while the rest are still stuck complaining.
