Ask Veda

TaxClue AI · Active
Namaste! I'm Veda — TaxClue's AI assistant.

Ask me anything about GST, Income Tax, Company Registration, Trademark, or any compliance topic. I'll give you a direct answer.
Free Expert Consultation
Powered by TaxClue · India's Trusted Compliance Platform

GST on Food Delivery — Swiggy, Zomato & Cloud Kitchen

Updated: 3 June 2026  |  CGST Act  |  Section 9(5) Aggregator Rule

Food ordered via Swiggy/Zomato: 5% GST on food value — paid by aggregator as deemed supplier (Section 9(5)). Delivery charges: 18% GST. Cloud kitchens: 5% GST as restaurant services. No ITC for businesses on employee food orders. Packaging charges at 5%.
Section 9(5)
Food aggregators (Swiggy/Zomato) pay GST as deemed suppliers — restaurant is relieved of GST liability.
5% on food (no ITC). 18% on delivery charges. 18% on platform fee. Aggregator files GSTR and pays 5% restaurant GST to government.

GST Breakdown on Food Delivery Order

ComponentGST RateWho PaysITC Available
Food items (restaurant services)5%Aggregator (Section 9(5))No
Delivery charges18%Aggregator (logistics)Businesses: No (personal use blocked)
Platform fee / convenience fee18%AggregatorBusinesses: No (personal use)
Packaging charges5%Composite with foodNo
Cloud kitchen (own app)5%Cloud kitchenNo
Hotel restaurant (tariff >₹7,500/night)18%Hotel/aggregatorPartial

Frequently Asked Questions

Why is GST on Swiggy/Zomato only 5% instead of 18%?
Food delivered via Zomato or Swiggy attracts 5% GST because: Section 9(5) of CGST Act designates food aggregators as "deemed suppliers" — they pay GST on restaurant services, not the restaurant. 5% is the restaurant service GST rate (for standalone restaurants). This is the same 5% a customer would pay at the restaurant. The 18% rate applies to restaurants inside hotels with room tariff > ₹7,500/night. No ITC: Under the 5% restaurant services rate, the aggregator/restaurant cannot claim Input Tax Credit on inputs — hence no cascading ITC benefit.
Does GST apply on delivery charges from Swiggy or Zomato?
Yes — delivery charges (logistics/transport service) are taxed separately: Delivery fee charged by Swiggy/Zomato: 18% GST (classified as delivery/logistics service, SAC 9965). Food value: 5% GST (restaurant services). Packaging charges: 5% GST (forms part of composite supply with food). So a ₹300 meal order with ₹40 delivery fee: ₹300 × 5% GST = ₹15 food GST + ₹40 × 18% = ₹7.20 delivery GST. Platform fee: 18% GST. Surge pricing/peak fee: 18% GST. The bill clearly shows these components with respective taxes.
What is the GST rate for cloud kitchens?
Cloud kitchens (online-only restaurants with no dine-in): Treated as restaurant services — 5% GST on food prepared and delivered. Section 9(5) applies: if orders come through Zomato/Swiggy — aggregator pays 5% GST. If cloud kitchen has its own app/website for ordering: cloud kitchen pays 5% GST. GST registration: mandatory if turnover > ₹20L. No ITC: cloud kitchens under 5% restaurant category cannot claim ITC on kitchen equipment, ingredients. Exception: if cloud kitchen serves food at its own premises (even briefly as a pickup point) — still 5% as restaurant service. FSSAI licence required separately.
How is GST charged on a typical food delivery bill?
Typical Swiggy/Zomato GST breakdown on a bill: Item prices (subtotal): base food value. GST on food (restaurant services): 5% of food value. Delivery fee: separate charge. GST on delivery: 18% of delivery fee. Platform fee: separate charge. GST on platform fee: 18% of platform fee. Packaging charges: part of food supply, so 5%. Total bill = food + food GST (5%) + delivery fee + delivery GST (18%) + platform fee + platform fee GST. The GST is paid by: food GST → aggregator (Swiggy/Zomato) pays under Section 9(5). Delivery/platform GST → aggregator pays as its own service.
Can businesses claim ITC on food ordered via Swiggy/Zomato?
No — ITC on food ordered for employees via delivery apps is BLOCKED under Section 17(5)(b)(i): food, beverages, outdoor catering — ITC is blocked for businesses. Even if the order has a GST invoice, the company cannot claim ITC on the food portion. However: ITC IS available for: restaurants/hotels that buy food ingredients for making food (manufacturer), food companies purchasing goods for resale. Catering companies: ITC available on raw materials used for providing taxable catering services. The blocking applies to the END recipient using food for personal/employee consumption, not to the supply chain.

Related Pages