New GST rules impose an 18% tax on delivery charges, raising food costs on aggregator apps while giving Domino’s and direct orders an advantage.
Food delivery via apps such as Zomato, Swiggy, and Blinkit will soon become more expensive. Beginning September 22, 2025, these platforms shall charge 18% GST on delivery fees, in addition to the current 5% GST on restaurant services. This decision is part of the GST Council’s efforts to provide greater transparency under the new GST 2.0 system.
Impact on Food Delivery Platforms
The new levy will increase the annual tax liability of Zomato and Swiggy by an estimated ₹180–200 crore each. To manage the impact, the platforms are expected to raise delivery charges and platform fees. Industry analysts suggest the hike will make every order cost about ₹2–₹2.6 more for consumers.
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Domino’s and Direct Orders Have an Advantage
Restaurant chains such as Domino’s, which operate their own delivery networks, will continue to charge only the standard 5% GST. This difference gives them a clear edge over aggregator apps. Smaller restaurants that encourage customers to place direct orders are also likely to benefit as people look for cheaper alternatives.
Rising Costs for Customers and Delivery Partners
Zomato hiked its platform charge to ₹12.50, while Swiggy raised it to ₹15.Along with increasing consumer costs, industry analysts warn that delivery partners may see lower profitability if platforms pass some of the tax load to them.
Industry Outlook
Magicpin already factors GST into its pricing and is better positioned to maintain stable costs. Competitors now face slimmer margins and growth challenges under the new rules. Analysts warn that these changes could push customers toward direct restaurant apps or dining out, reshaping the food delivery business in India.
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