Food Delivery Fees To Be Higher For Swiggy And Zomato Customers

Additional expense for consumers

Online food delivery will now be more expensive. Firms such as Swiggy, Zomato, and Magicpin have already raised platform fees in the recent festive season. Now, from 22 September, delivery charges will also attract an 18% GST. It implies additional expense for customers on each order.

GST on food and delivery

There are two GST charges for online food orders:

  • 5% GST on food (introduced since January 2022).
  • 18% GST on delivery charges (implemented from September 22).

The platforms will be charging this directly to customers.

Platform fee hike

Delivery companies used to charge only delivery fees. They introduced a platform fee later to enhance margins. This charge began at ₹2 and increased over time to ₹5–10. The charges were recently adjusted again:

  • Swiggy: ₹15 (including GST) in certain cities.
  • Zomato: ₹12.50 (not including GST).
  • Magicpin: ₹10 per order.

How much more will customers pay?

Under the new GST rule:

  • Zomato users could pay approximately ₹2 more per order.
  • Swiggy users could pay approximately ₹2.6 more per order.

Together, a customer who previously paid ₹10 as a platform fee might now pay ₹5–7 more on account of increased fees and GST.