GST's New Framework
The core of the price increase lies in a key shift in how the Goods and Services Tax (GST) is applied to online food delivery services. Under Section 9(5)
of the Central GST Act, the onus of paying GST has shifted to the electronic commerce operator (ECO). This means companies like Swiggy and Zomato are now responsible for paying the 18% GST on the delivery services they provide. Previously, the tax structure was different, but the GST Council, in a broader reform, has now explicitly included these services under the tax net. This change impacts local e-commerce delivery, affecting the final cost for consumers.
Delivery Fees Increase
The financial impact of this GST adjustment is quite direct: your food delivery bills are going up. Because delivery fees are now taxed, every order incurs an additional 18% GST. According to reports, the average delivery fee on Zomato was approximately ₹11-₹12 in fiscal year 2025, resulting in around ₹2 being added as GST. Similarly, Swiggy’s average fee of ₹14.5 leads to an extra ₹2.6 in tax per order. These sums, while seemingly small on a per-order basis, can add up for frequent users. The changes became effective from September 22nd, and the impact has already been observed by consumers.
Blinkit and Instamart
Not all platforms are affected the same way. For quick-commerce services, such as Blinkit, delivery charges were already taxed. Therefore, there is no additional impact from the new rule. This means that customers using Blinkit would not experience a change in delivery costs due to the new GST implementation. Swiggy Instamart, which operates with a smaller fee structure, experiences a modest increase in tax. With an average fee of ₹4 per order, the GST addition is about ₹0.8. The variations in tax impact depend on the pre-existing tax status of the delivery service and the specific fee structure employed by each platform.
Public Reaction Online
The introduction of GST on delivery services generated notable attention and discussion online. The news sparked a flurry of reactions and witty comments across social media platforms. Some users expressed their opinions with humor, such as a comment suggesting a humorous extension of fees that include 'Rain Fee' and a 'Sunlight Convenience Fee'. The posts garnered thousands of views, with users sharing their views on the change. This shows how widely noticed and discussed this shift in policy has become, with users openly talking about the financial and practical effects of these new regulations on their delivery orders. The responses demonstrated a blend of amusement and concern about the increased costs.
