Overview

• Local delivery services have been brought under Section 9(5) of the Central GST Act, making marketplaces liable to collect and remit 18% GST on delivery fees paid by customers.
• The clarification takes effect on September 22, as confirmed by the finance minister, formalizing a tax that was previously applied inconsistently.
• Zomato and Swiggy are each estimated to incur an additional annual tax burden of roughly Rs 180–200 crore, according to reported assessments.
• Executives indicate the cost will be shared through higher delivery charges for customers and reduced net payouts to delivery partners, pressuring worker earnings.
• Brokerages say the impact should be manageable; Motilal Oswal upgraded Swiggy to a buy with a ₹560 target and stronger growth forecasts, while per‑order estimates point to about ₹2–₹2.6 extra on food deliveries.