Domino’s to Benefit as GST 2.0 Hits Food Delivery Platforms

With the implementation of GST 2.0 from September 22, 2025, customers may increasingly prefer ordering directly from Domino’s or similar restaurants that have their own delivery networks instead of platforms like Zomato and Swiggy.

The reason lies in tax arbitrage, as Domino’s charges 5% GST on food orders plus packaging, while delivery aggregators may attract additional levies.

Impact on Food Delivery Platforms

The GST overhaul has introduced clarity by bringing local e-commerce delivery services under Section 9(5) of the CGST Act. As a result, platforms such as Zomato, Swiggy, and Blinkit will now be liable to pay 18% GST on delivery services if the delivery partner is unregistered under GST, in addition to the 5% GST on restaurant services. This creates a pricing disadvantage for these aggregators, potentially making food orders more expensive for customers.

Why Domino’s Stands to Benefit?

While the GST rate for restaurants remains unchanged, the addition of delivery GST on aggregators creates a cost gap. Domino’s and other chains with in-house delivery services will continue to levy only 5% GST, making them a more affordable option. This cost advantage could lead to a surge in direct orders, reducing dependency on third-party apps.

Industry Context and Previous Ambiguities

Previously, local delivery services such as food, groceries, and parcels were not explicitly covered under Section 9(5), creating confusion around tax liabilities. The GST Council, led by Finance Minister Nirmala Sitharaman, has now addressed this ambiguity by explicitly including delivery services in GST 2.0. This move aims at streamlining compliance but may shift customer behavior in favor of direct restaurant orders.

Also Read: GST Rate Revised: Know Which Items Get Cheaper and Costlier, Electronics, Auto and Life Insurance!

Conclusion

The GST 2.0 framework could redefine the food delivery landscape in India. While it ensures tax clarity and compliance, the new structure may make aggregator platforms less cost-effective, benefitting restaurants like Domino’s with in-house delivery networks. The coming months will reveal whether this shift significantly impacts market share between direct restaurant orders and aggregator platforms.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.