Ordering from Swiggy and Zomato is set to get costlier for millions of users across India. A double whammy of a new government tax and a hike in platform fees by the companies themselves is driving up the cost of online food delivery, just in time for the festive season.
1. The New GST Levy on Delivery Charges
The biggest change comes from the government. Starting September 22, 2025, an 18% Goods and Services Tax (GST) will be levied on delivery charges. The GST Council’s decision to include “local delivery services” under Section 9(5) of the CGST Act means that food delivery platforms will now have to pay this tax on the fees they collect from customers for delivery.
While the exact impact on each order will vary, industry estimates suggest this new tax could add approximately ₹2 per order for Zomato customers and ₹2.6 for Swiggy users. While this may seem like a small amount, it will add up for frequent users.
2. The Hike in Platform Fees
Even before the new GST rule takes effect, both Swiggy and Zomato have already increased their platform fees. These are flat charges levied on every order, regardless of the order value or delivery fee.
- Swiggy has raised its platform fee to ₹15 (inclusive of GST) in select markets.
- Zomato has increased its platform fee to ₹12.50 per order (excluding GST).
This is not the first time these companies have raised their fees. Both have been steadily increasing the platform fee since its introduction in 2023 as part of a broader strategy to improve profitability and offset rising operational costs.
Why Are These Changes Happening Now?
The timing of these price hikes is strategic. Companies like Swiggy and Zomato often test and implement price increases during periods of high demand, such as the festive season, when customers are more willing to absorb a slight increase in cost.
These fee hikes and the new GST levy are part of a larger trend in India’s food delivery ecosystem where convenience is becoming more expensive. For the companies, these additional revenues are crucial for improving their financial health and moving towards a sustainable business model.
Be Mindful of Your Orders
As a consumer, it’s important to be aware of these changes. While discounts and offers might still be available, the final cost of your order will now include these additional charges. It’s a good time to be careful while ordering food online and keep a close eye on the final bill to avoid any surprises.
