GST 2.0 to Make Food & Grocery Deliveries Costlier From Sept 22 — Here’s What Customers Will Pay

From September 22, 2025, ordering food or groceries via apps like Swiggy, Zomato, Blinkit, Zepto, BigBasket, and Dunzo will likely cost more. The GST Council, in its 56th meeting on September 3, decided that 18% GST will now be levied on delivery charges under the new GST 2.0 framework.

What Changes Under GST 2.0?

Until now, delivery fees were exempt from GST. With the revised rules, platforms operating as Electronic Commerce Operators (ECOs) will be required to pay GST on local delivery services, as per Section 9(5) of the CGST Act.

This means that whether it’s your late-night food order or grocery top-up, delivery charges will get pricier.

How Much Extra Will Customers Pay?

The impact will directly fall on consumers, as platforms are expected to pass on the added tax. A senior food delivery executive told The Indian Express:

“We would have no other option but to pass on that hit to customers, so you can expect delivery fees going up, or even delivery partner earnings taking a hit. The cost of food could also go up.”

For instance, on an order worth ₹1,000, customers already pay:

• Restaurant GST (~₹176)
• Platform fee (~₹30, including GST)
• Packaging charges

With GST 2.0 taxing delivery separately at 18%, the final bill could rise even further.

Industry Reactions

Delivery and quick-commerce platforms are currently assessing how this change will affect their operating margins. Early reports suggest most companies are preparing to pass on the tax burden to consumers rather than absorb the hit.

Why the Change?

The GST Council says the move is aimed at plugging loopholes and boosting tax collection under GST 2.0. The new framework also simplifies the overall structure:

• Standard GST rate: 18%
• Lower rate: 5%
• Demerit rate: 40% (for harmful or non-essential goods/services)

This overhaul is designed to streamline the four-tier GST system into a simpler, more revenue-efficient model.