The GST Council, in its 56th meeting on 3 September 2025, announced that delivery charges levied by e-commerce and quick commerce platforms will now attract 18% GST. This move, effective from 22 September 2025, ends the exemption these services previously enjoyed and brings delivery into the broader tax net.
Impact on E-Commerce and Quick Commerce Platforms
Companies like Zomato, Swiggy, Blinkit, Zepto, Amazon, and Flipkart will now have to pay GST on every delivery charge collected. Since delivery services are integral to their operations, the additional tax is expected to significantly impact margins. Industry insiders say most firms are likely to pass on this cost to customers rather than absorb it.
How Much Extra Will Customers Pay?
If the new levy is passed on, customers may see a rise in final bills. For instance, ordering food worth ₹500 already includes around ₹88 as GST on food, plus platform fees and packing charges. Under the new system, the delivery fee will also attract 18% GST, pushing up the overall cost of online orders.
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.”
GST Council’s Rationale
The GST Council recommended including ‘local delivery services’ under Section 9(5) of the CGST Act, making e-commerce operators liable to pay the tax. This move aligns delivery services with other taxable services, ensuring consistency in the GST framework.
Who Will Feel the Pinch?
While regular users may notice a clear rise in costs, customers already paying for premium memberships or value-added services may not see significant changes, as these plans often bundle delivery benefits. However, for the majority of users, food, grocery, and quick delivery services are set to become costlier.
