No New 5% GST on Food Delivery Apps, Confirms Government

The Central Government has clarified that it is not imposing a new 5% Goods and Services Tax (GST) without input tax credit on food delivery platforms such as Zomato and Swiggy. This was confirmed by Pankaj Chaudhary, Minister of State for Finance, during a session in the Rajya Sabha on Tuesday. 

Responding to a question from Rajya Sabha member Golla Baburao, Chaudhary emphasized that GST rates are determined by the GST Council, a collective body comprising representatives from both the Union and state governments. Currently, restaurant services—whether availed directly or through platforms like Zomato and Swiggy—are taxed at 5% without input tax credit, except for establishments operating in designated special zones.

The possibility of levying a separate tax on food delivery services was discussed during the 55th meeting of the GST Council on December 21, 2024. However, Chaudhary stated, “The GST Council recommended that the issue needs further examination.” This indicates that no new taxation on food delivery services will be introduced at this stage, and the matter remains under review.

Other services offered by these platforms, such as platform fees, already attract an 18% GST. Since there is no new 5% GST on food delivery services, consumers will not face any additional charges due to tax changes at this time.

This clarification provides relief to both consumers and food delivery service providers, ensuring that the cost of ordering food via online platforms remains unchanged for now. The industry and consumers will closely watch further deliberations by the GST Council on this issue.

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