The Finance Ministry has clarified that there are no plans to introduce a new 5% Goods and Services Tax (GST) on food delivery platforms such as Zomato and Swiggy. This announcement, made by the Minister of State for Finance, Pankaj Chaudhary, aims to quell speculation about increased taxes on online food ordering. The current GST rate of 5% on restaurant services, whether ordered directly or via apps, remains unchanged for now. While the GST Council is examining the matter further, consumers will not face any additional costs on food delivery orders due to new taxes.
In a major clarification, the central government has stated that it has no plans to impose a fresh 5% Goods and Services Tax (GST) without input tax credit on food delivery platforms such as Zomato and Swiggy. Pankaj Chaudhary, Minister of State for Finance, made this announcement in the Rajya Sabha on Tuesday, April 1, 2025, putting an end to speculation about increased taxation on food delivery services.
Current GST Structure on Food Delivery Services
Replying to a query raised by Rajya Sa
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FAQ :
No, the Finance Ministry has confirmed there are no plans to impose a fresh 5% Goods and Services Tax (GST) on food delivery platforms.
Currently, restaurant services, including those ordered through online food delivery apps, are taxed at 5% without input tax credit.
The GST Council recommended that the issue needs further examination, meaning no immediate tax changes have been made and the matter is still under review.
No, consumers will not face any added costs on their food delivery orders due to new taxes, as no new 5% GST is being levied at this time.
Yes, food delivery platforms already charge 18% GST on additional services like platform fees.