Swiggy, Zomato Food Delivery to Get Expensive, Know What Government Says

Food delivery costs are set to rise after the 18% GST on delivery fees. Platforms like Swiggy and Zomato may charge more, raising questions about whether they can balance prices with service quality.

Online Food Orders to Become Costlier

If you frequently order meals from Swiggy or Zomato, there’s an important update for you. Starting September 22, the cost of food delivery on these platforms will increase. The reason is the new 18% GST on delivery charges. This means customers will now pay an additional tax along with the delivery fee.

On top of this, the companies have already raised platform charges. The GST adds to the cost, making your total bill heavier. This increase will directly impact household budgets of regular users.

Delivery Charges Already Increased

Swiggy has raised its platform fee to ₹15 per order in certain cities, including GST. Meanwhile, Zomato now charges ₹12.50 per order without GST. Magicpin has also revised its fee to ₹10 per order.

Due to these hikes, Zomato customers will now pay around ₹2 more per order. Swiggy users will face an extra cost of nearly ₹2.6 per order. These small increases may look minor, but together they push the total bill much higher for frequent buyers.

Government Clarifies GST Rules

The Finance Ministry recently issued an FAQ explaining GST on local delivery services. It confirmed that an 18% GST will apply to such services.

According to the ministry, “If the service is provided directly by a registered person, then 18% GST is payable. If the service is provided by an unregistered person through an e-commerce operator (ECO), then GST will be paid by the ECO. And if a registered person provides services through ECO, then the registered person has to pay 18% GST.”

In simple terms, food delivery services will face GST either directly or through the e-commerce operator.

Impact of Higher Fees

Food delivery companies have been exploring new ways to boost revenue in recent months. Earlier, their earnings came mostly from restaurant orders. Now, with increased delivery and platform charges, they are adding extra income streams.

For millions of users, the rising cost of ordering food online will hit monthly expenses. The challenge ahead is whether these companies can continue offering affordable service while maintaining customer satisfaction.