Overview

• India’s GST Council has brought local delivery services routed through e‑commerce operators under Section 9(5), making platforms the deemed supplier liable to collect and remit 18% GST.
• The change takes effect on September 22, with analysts pegging the incremental burden at roughly Rs 180–200 crore annually per large food‑delivery platform.
• Executives indicate the cost will likely be shared between customers and delivery partners, pointing to potential delivery‑fee increases and lower short‑term partner earnings.
• Tax experts say the levy must be paid in cash without input tax credit, requiring billing changes and adding compliance and cash‑flow strain for platforms.
• Quick‑commerce units that already treat delivery as taxable revenue, such as Blinkit and Instamart in many cases, are expected to face a smaller impact compared with core food‑delivery orders.