No New GST on Food Delivery Services. Rate Reduced to 5%, Clarifies CBIC



Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has debunked claims of a new Goods and Services Tax (GST) on food delivery services. They clarified that the GST rate for delivery services provided via e-commerce platforms, including food apps, has actually been reduced from 18% to 5%. This change aligns with recommendations from the 57th GST Council meeting and aims to reduce confusion, not impose a new tax burden.

The Central Board of Indirect Taxes and Customs (CBIC) has clarified that claims suggesting a new GST imposition on food delivery services are factually incorrect. In a post on X, CBIC stated that GST on delivery services provided through e-commerce platforms has been reduced from 18% to 5%, following the recommendations of the 57th GST Council meeting.

According to CBIC, food delivery services, including those offered through food delivery apps, were earlier taxed at 18%. The revised rate of 5% now applies uniformly to delivery services provided through e-commerce platforms.

The clarification comes amid claims circulating on social media about a fresh tax burden on such services. CBIC has rejected these claims, emphasising that the latest change represents a reduction in the applicable GST rate rather than the introduction of a new tax.

No New GST on Food Delivery Services. Rate Reduced to 5 , Clarifies CBIC

The clarification aims to address confusion among consumers and businesses regarding the GST treatment of delivery services following the latest GST Council recommendations.

FAQ :

No, the CBIC has clarified that there is no new GST being imposed on food delivery services. Instead, the existing GST rate has been reduced.

The GST rate for food delivery services provided through e-commerce platforms has been reduced to 5%.

Previously, food delivery services provided through e-commerce platforms were taxed at 18%.

The reduction in GST rate was recommended by the 57th GST Council meeting.

Yes, the revised rate of 5% now applies uniformly to all delivery services provided through e-commerce platforms.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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