Quick Answer
On a Swiggy or Zomato order, the food value is taxed at 5% (no ITC) and the platform — not the restaurant — deposits it under Section 9(5) of the CGST Act. Since GST 2.0 (22 September 2025), the app's delivery fee and platform fee attract 18% GST. Cloud kitchens are treated as restaurants at 5%.
Restaurant food 5%
Delivery fee 18%
Platform fee 18%
Cloud kitchen 5%
At a glance
GST on a Food Delivery Order — Decision Table
Every component of a Swiggy/Zomato bill, its GST rate, who deposits the tax and whether Input Tax Credit is available.
| Component | GST Rate | Who Pays | ITC |
|---|---|---|---|
| Restaurant food value | 5% | Platform (ECO · Sec 9(5)) | No |
| Delivery fee (app) | 18% | Platform | No* |
| Platform / convenience fee | 18% | Platform | No* |
| Packaging charged by restaurant | 5% | With food (composite) | No |
| Cloud kitchen — via Swiggy/Zomato | 5% | Platform (ECO) | No |
| Cloud kitchen — own app/website | 5% | Cloud kitchen | No |
| Hotel restaurant (tariff ≥ ₹7,500) | 18% | Platform / hotel | Yes |
| Grocery / instamart packaged goods | Item HSN | Seller / platform | Varies |
* For a business ordering employee meals, ITC on the whole order (food + delivery) is blocked under Section 17(5)(b). Delivery/platform-fee GST rose to 18% under GST 2.0 (eff 22 Sep 2025). Confirm on the official GST portal before invoicing.
Why the restaurant charges nothing
Section 9(5) — The Platform Pays the Food GST
Since 1 January 2022, Zomato and Swiggy are Electronic Commerce Operators (ECOs) and "deemed suppliers" of restaurant service under Section 9(5) of the CGST Act. The liability to pay the 5% GST on food shifted from the restaurant to the platform.
CustomerPlaces the order & pays the bill
→
Swiggy / ZomatoCollects & deposits 5% GST on food
→
RestaurantCharges no GST on these orders
→
GST reportingRestaurant still reports the supply
- The food value is taxed at 5% — deposited by the platform, not the restaurant.
- From 22 September 2025, the app's delivery fee and platform/convenience fee carry 18% GST as the platform's own service (earlier treated as a pass-through to riders).
- The restaurant reports these supplies in its GST returns but does not pay tax on them again.
What changed under GST 2.0 (22 Sep 2025)
The food rate stayed at 5%, but the GST Council closed the loophole that let platforms treat delivery fees as a rider pass-through. Swiggy/Zomato delivery and platform fees now attract 18% GST, adding roughly ₹2–3 to a typical order.
Selling on Swiggy/Zomato? Reconcile your payouts with your GST returns.
Get Delivery GST Advice →Worked example
How GST Adds Up on a ₹500 Order
A ₹500 food order with a ₹40 delivery fee and a ₹10 platform fee from a standard (non-hotel) restaurant:
5% Food value
Food value₹500
GST @ 5%₹25
Food + GST₹525
18% Delivery + platform fee
Delivery ₹40 + platform ₹10₹50
GST @ 18%₹9
Fees + GST₹59
Total payable ≈ ₹584. The platform deposits ₹25 (food, 5%) under Section 9(5) and ₹9 (fees, 18%) as its own service. The restaurant collects no GST on this order.
5%
Restaurant food — no ITC
- Food value on every order
- Standalone restaurants & cloud kitchens
- Dine-in, takeaway & delivery alike
- Platform deposits it under Sec 9(5)
- Input Tax Credit not available
vs
18%
App fees — platform's service
- Delivery fee charged by the app
- Platform / convenience / handling fee
- Surge or peak-time fee
- Since 22 September 2025 (GST 2.0)
- Paid by the platform, not the restaurant
Want your Swiggy/Zomato GST reconciled every month?
Talk to a GST Expert →Delivery-only kitchens
GST for Cloud Kitchens
A cloud kitchen (delivery-only, no dine-in) is treated as a restaurant service and charges 5% GST with no ITC. Who deposits the tax depends on the sales channel:
- Orders through Swiggy / Zomato — the platform pays the 5% under Section 9(5); the kitchen charges no GST.
- Orders through the kitchen's own app, website or phone — the cloud kitchen itself collects and pays the 5%.
- GST registration is mandatory once turnover crosses ₹20 lakh (₹10 lakh in special-category states); a separate FSSAI licence is also required.
You charge GST yourself if
- You sell through your own website/app or over the phone
- You run a subscription or corporate-meal model directly
- You supply catering or bulk orders off-platform
The platform pays it if
- All orders come through Swiggy / Zomato (ECO)
- You are a pure delivery kitchen on aggregators
- You have no direct-ordering channel
Launching a cloud kitchen? Get GST + FSSAI set up together.
Get Cloud-Kitchen Setup →Credit rules
ITC on Food Delivery — Who Can Claim It?
The 5% restaurant rate carries no ITC for the restaurant, and a business ordering meals for staff cannot claim ITC either. Here is the full picture:
| Situation | ITC? | Reason |
|---|---|---|
| Restaurant / cloud kitchen on 5% rate | No | 5% rate is without ITC on inputs |
| Business orders employee meals via app | No | Blocked under Sec 17(5)(b) — food & beverages |
| Delivery / platform fee GST for a business | No | Part of the blocked food supply |
| Hotel restaurant at 18% (specified premises) | Yes | 18% rate carries full ITC |
| Outdoor catering contract (event) | No | Blocked for the recipient under Sec 17(5)(b) |
ITC on food, beverages and outdoor catering is blocked for the end recipient under Section 17(5)(b) of the CGST Act.
TaxClue Insight
Because the platform deposits the 5% food GST, restaurants often forget to report Section 9(5) supplies in GSTR-1 and GSTR-3B. Mismatches between app payout statements and GST returns are a common notice trigger — reconcile them monthly.
Government sourcesRates & notifications: gst.gov.in · CBIC rate finder: cbic-gst.gov.in · ECO liability: Notification 17/2021-CT(R), Section 9(5) CGST Act · Delivery-fee 18% & GST 2.0: GST Council decisions effective 22 September 2025 · Blocked credit: Section 17(5)(b), CGST Act 2017
People also ask
Frequently Asked Questions
Rates & Slabs
What is the GST rate on food delivery?
The food value on a Swiggy or Zomato order is taxed at 5% without Input Tax Credit — the same rate as ordering directly from a standalone restaurant. Since 22 September 2025 (GST 2.0), the platform's delivery fee and platform/convenience fee are separately taxed at 18%. So a delivery order carries 5% on the food and 18% on the app's service fees.
Why is GST on Swiggy/Zomato food only 5% and not 18%?
Because delivered restaurant food is a restaurant service, and restaurant services are taxed at a uniform 5% without ITC. The 18% rate applies only to restaurants in specified premises (a hotel with a declared room tariff of ₹7,500 or more per night). The 5% is exactly what you would pay eating at the restaurant; the platform simply deposits it on the restaurant's behalf under Section 9(5).
Is there 18% GST on Swiggy and Zomato delivery charges?
Yes, since 22 September 2025. Under GST 2.0 the GST Council ended the practice of treating delivery fees as a pass-through to riders, so the delivery charge is now the platform's own service taxed at 18%. This typically adds around ₹2–3 to a normal order. The food itself remains at 5%.
Does GST apply to the platform or convenience fee?
Yes. The platform fee, convenience fee, handling fee and any surge/peak-time fee charged by Swiggy or Zomato are the platform's own service and are taxed at 18% GST. Only the food value is at 5%. Packaging billed by the restaurant itself rides with the food at 5% as a composite supply.
Section 9(5) & Who Pays
Who pays GST on online food delivery?
The platform. For orders placed through Swiggy or Zomato, the Electronic Commerce Operator is liable under Section 9(5) of the CGST Act to collect and deposit the 5% GST on the food value. The restaurant issues its bill without collecting that GST but still reports the supply in its returns. The 18% on delivery and platform fees is also paid by the platform as its own service.
What is Section 9(5) of the CGST Act?
Section 9(5) lets the government notify certain services where the Electronic Commerce Operator — not the actual supplier — is liable to pay GST. Restaurant service supplied through platforms like Swiggy and Zomato was notified under it from 1 January 2022. So the aggregator becomes the deemed supplier and pays the 5% GST on the food to the government.
Does the restaurant still have to report Swiggy/Zomato sales?
Yes. Even though the platform deposits the GST, the restaurant must still report these Section 9(5) supplies in its GSTR-1 and GSTR-3B (in the relevant no-tax-payable field). Failing to reconcile app payout statements with GST returns is a frequent cause of GST notices, so restaurants should match the two every month.
Bill & Example
How is GST charged on a typical food delivery bill?
A typical bill shows: the food subtotal with 5% GST (deposited by the platform under Section 9(5)); the delivery fee with 18% GST; and the platform/convenience fee with 18% GST. Packaging billed by the restaurant is part of the food supply at 5%. For example, a ₹500 food order with ₹50 of app fees pays about ₹25 food GST plus ₹9 fee GST.
How much extra do I pay after the 18% delivery GST?
Only a small amount. The 18% applies to the delivery and platform fees, which are usually ₹10–₹40, so the added GST is roughly ₹2–₹3 per order. It does not increase the tax on the food value, which stays at 5%.
Cloud Kitchen
What is the GST rate for cloud kitchens?
Cloud kitchens (delivery-only, no dine-in) are treated as restaurant services and charge 5% GST with no ITC on kitchen equipment, ingredients or rent. When they sell only through Swiggy/Zomato, the platform pays the 5% under Section 9(5); on orders through their own app, website or phone, the cloud kitchen collects and pays the 5% itself. A separate FSSAI licence is mandatory.
When must a cloud kitchen register for GST?
A cloud kitchen supplies a service, so GST registration is mandatory once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special-category states). If it supplies exclusively through an ECO like Swiggy/Zomato and makes no other taxable supply, the position can differ, but most kitchens register to invoice direct orders and issue tax invoices.
ITC & Business
Can a business claim ITC on food ordered via Swiggy/Zomato?
No. ITC on food, beverages and outdoor catering is blocked for the recipient under Section 17(5)(b) of the CGST Act, even with a valid GST invoice. So a company ordering employee meals through delivery apps cannot claim ITC on the food, the delivery fee or the platform fee. The block applies to the end recipient consuming the food, not to the restaurant's own input supply chain.
Can restaurants claim ITC at the 5% delivery rate?
No. The 5% restaurant rate is a no-ITC rate — GST paid on rent, equipment, packaging and gas becomes an embedded cost. Only restaurants in specified premises charging 18% (a hotel with a room tariff of ₹7,500 or more per night) can claim full ITC on their inputs.
Is packaging charge taxed at 5% or 18%?
Packaging charged by the restaurant as part of the meal is a composite supply with the food and is taxed at 5%. The 18% applies only to the platform's own delivery and convenience fees, not to packaging that forms part of the food order.
Is GST charged on food from a hotel restaurant delivered via app?
Yes, at 18% if the restaurant is in specified premises — a hotel with a declared room tariff of ₹7,500 or more per night. Such food carries 18% GST (with ITC for the restaurant) even when ordered through Swiggy or Zomato, unlike the 5% that applies to ordinary standalone restaurants and cloud kitchens.
Did GST 2.0 change food delivery rates?
Partly. The GST 2.0 reform effective 22 September 2025 kept restaurant food at 5%, but it brought the delivery and platform fees charged by Swiggy/Zomato squarely into the 18% slab by ending their pass-through treatment. So the food rate is unchanged while the app service fees now clearly attract 18%.
If you would rather not do it yourself
Related TaxClue services
GST RegistrationRegister your restaurant or cloud kitchen with the right classification.See the service →GST Return FilingMonthly GSTR-1 & 3B with Swiggy/Zomato payout reconciliation.See the service →FSSAI for RestaurantsThe mandatory food licence for every kitchen selling on apps.See the service →Composition FilingQuarterly CMP-08 & annual GSTR-4 for eligible small food businesses.See the service →
TaxClue for food & delivery businesses
Selling Food on Swiggy or Zomato?
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