GST on Delivery Charges collected by restaurant.

This discussion clarifies the GST rate applicable to delivery charges collected by restaurants. If the restaurant itself collects the charges, the GST rate will match that of the principal supply (food service), typically 5%. However, if an e-commerce operator collects the charges, a GST of 18% applies. This is because delivery charges are considered a composite supply, following the rate of the main service provided by the restaurant, as per Section 8 of the CGST Act 2017.