MoS Finance Confirms No Additional GST for Zomato, Swiggy, and Other Food Delivery Apps

Food delivery services like Zomato and Swiggy have become a significant part of our daily lives. From ordering a quick lunch to indulging in late-night snacks, these apps are a convenience many of us rely on. However, a recent question raised in the Rajya Sabha about the possibility of a new Goods and Services Tax (GST) on food delivery apps has sparked discussions. The good news for consumers is that there will be no new GST imposed on these services, at least for now.

The GST Clarification: No New Tax for Food Delivery Apps

On April 1, 2025, the Minister of State for Finance, responded to a question from a Rajya Sabha member, clearing the air on the issue. It was explained that the GST rates for food delivery apps, such as Zomato and Swiggy, are currently set by the GST Council, a body consisting of representatives from both the Union and state governments. He clarified that there would be no new GST imposed on food delivery services at this stage.

As of now, food delivery services are taxed at 5% under GST, but without the input tax credit. This applies to restaurant services whether ordered directly or via apps like Zomato and Swiggy. Additional services offered by these apps, such as platform fees, are currently subject to an 18% tax.

The GST Council’s Role in Deciding Tax Rates

The GST rates for various services, including food delivery, are decided by the GST Council. This council is made up of both Union and state government representatives who come together to discuss and set tax rates across various sectors. During the 55th meeting of the GST Council on December 21, 2024, the topic of imposing a separate GST on food delivery services was discussed. The council decided that the matter required further examination before any decision could be made.

Why No New GST for Food Delivery Services?

One of the main reasons for the government’s decision not to impose additional GST at this time is to ensure that food delivery services remain accessible and affordable for the masses. With the rise of online ordering, these apps have played a crucial role in supporting local businesses and offering convenience to consumers.

Any increase in tax rates could lead to higher prices, potentially affecting the affordability of meals for consumers, especially those who rely on these services regularly. The government is also considering the wider impact of such decisions, weighing the benefits of encouraging digital platforms against the need to maintain a stable and fair tax structure.

Conclusion

While there’s no immediate change in the taxation of food delivery services, the discussion is far from over. The GST Council’s decision to examine the issue further means that the topic will likely come up again in future meetings. As online food delivery continues to grow, the government may choose to re-evaluate its stance on taxation, depending on market trends, consumer demand, and the performance of the sector.

For now, consumers can rest easy knowing that food delivery apps like Zomato and Swiggy will not carry any additional GST burden, at least in the short term. The 5% GST on food services remains in place, ensuring a stable pricing structure for all involved.

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