Zomato, Swiggy and Other E-Commerce Platforms to Face 18% GST: Effective Sep 22

Popular e-commerce and quick commerce platforms like Swiggy, Zomato, Blinkit, and others will soon be subject to an 18% Goods and Services Tax (GST) on their delivery services, as per the revised tax framework coming into effect on September 22, 2025.

This move follows the decisions made during the 56th meeting of the GST Council held on 3 September 2025, where the central government announced significant changes to the taxation structure impacting the digital economy.

Under the revamped GST regime, services provided by Electronic Commerce Operators (ECOs), particularly local delivery services, will now fall under Section 9(5) of the CGST Act—a provision that previously excluded such services.

How Consumers Are Going to be Impacted?

Until now, delivery charges levied by these platforms were exempt from GST. With the new rule, however, companies will be required to pay 18% GST on these charges. This cost is expected to be passed on to consumers, meaning higher delivery fees or platform charges could soon become the norm.

Industry Response and Company Strategy

According to several media reports, companies are currently assessing the financial impact of this policy shift. Initial indications suggest that many may choose to transfer the tax burden to users rather than absorb the loss, to maintain operational margins and protect revenues.

GST Council’s Recommendation

The council's recommendation to bring delivery services offered via e-commerce platforms under Section 9(5) signals a significant policy shift. This inclusion makes the e-commerce operator directly responsible for collecting and paying GST on such services, rather than the individual service providers.

Also Read: GST 2.0 Impact on ITC: What Lower FMCG Taxes and Higher Tobacco Levies Mean

As a result, platforms like Zomato, Swiggy, Blinkit, Zepto, and similar players in the quick commerce and food delivery sectors must now factor in an additional 18% GST on delivery charges, making their services potentially more expensive for end users.

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