The days of cheap and cheerful food delivery in India are slowly coming to an end. Starting September 22, ordering your favorite meal from platforms like Swiggy and Zomato is going to cost more. For millions of users who rely on these services for quick meals, this is more than just a small price hike—it’s a shift in the very economics of convenience. So, why are these food delivery bills rising, and what does it mean for everyday users? The answer lies in the recent introduction of a new government levy and the ongoing rise in platform fees, both of which are reshaping the cost of getting food delivered to your doorstep.
The New GST on Food Delivery Services: A Closer Look
The main reason behind this price surge is the newly introduced 18% Goods and Services Tax (GST) on delivery charges. The Finance Ministry recently clarified that local delivery services are now fully taxable at this rate. This move is aimed at standardizing tax collection for online food delivery, removing ambiguity that has existed for years.
Here’s how the new rules work:
Direct Delivery by a Registered Business: If a restaurant with its own delivery service delivers your order, it must pay the 18% GST.
Delivery via an E-commerce Operator (ECO) by an Unregistered Business: If a small, unregistered eatery delivers via a platform like Swiggy or Zomato, the platform itself is now liable to pay the 18% GST under Section 9(5) of the CGST Act.
Delivery via an ECO by a Registered Business: Here, the registered restaurant supplying the delivery through the platform pays the GST.
In simple terms, the government has ensured that the tax is collected at the source, regardless of whether the restaurant is registered or not. For users, this means a new cost layer that platforms are likely to pass on to customers rather than absorb themselves.
How the New GST Will Affect Consumers
For the everyday customer, even small increases add up. Analysts estimate that the 18% GST will add around Rs 2 to each Zomato order and about Rs 2.6 to Swiggy orders. While this might seem minor for a single meal, for someone who orders food three or four times a week, the monthly impact can exceed Rs 25–30. Over a year, this translates to an additional Rs 300 or more, just for the convenience of home delivery.
These costs are particularly noticeable for regular users who have built habits around affordable online meals. Unlike discounts or offers that are temporary, this new GST is a permanent addition to the food delivery ecosystem. Platforms like Zomato and Swiggy are unlikely to absorb this, as their profitability relies on these fees to cover operational costs. The burden is now squarely on consumers, marking a shift in the pricing structure of online food delivery.
The Double Whammy: GST and Rising Platform Fees
Adding fuel to the fire, platform fees on both Zomato and Swiggy have been steadily rising. These fees are flat charges applied per order and have become an essential source of revenue for the companies. Recently, Swiggy raised its platform fee to Rs 15 in some markets, while Zomato pushed it to Rs 12.50.
For consumers, this is a double whammy. The new GST on delivery charges and rising platform fees together make ordering online noticeably more expensive. Where once you might have spent Rs 250 for a meal, you could now be paying ₹ 265–270 for the same order. Over time, these increases can influence consumer habits and loyalty.
Why Convenience Comes at a Higher Price
The twin factors of GST and platform fee hikes indicate a larger trend in India’s food delivery sector. The era of deep discounts and “cheap” delivery is slowly ending. Platforms are prioritizing financial stability and sustainable growth over aggressive customer acquisition through low prices.
For consumers, this raises important questions: is convenience worth the extra cost? Some may cut down on the frequency of their orders, while others might switch to restaurants with their own delivery services, which do not levy the 18% GST separately. Interestingly, restaurants managing their own deliveries may gain an advantage as customers seek more transparent and affordable options.
Beyond the numbers, rising costs have a psychological impact. Packaging fees, surge pricing, and now GST can make the final bill feel much higher than expected. This can affect customer trust and satisfaction, pushing some users to explore alternatives or return to cooking at home.
Food delivery companies face a delicate balancing act. They have successfully created a habit among millions of users, but now they must monetize it without alienating their core base. The current approach—layering fees and taxes—is a calculated risk, betting that the value of convenience will outweigh cost concerns. Whether this strategy succeeds remains to be seen.
The Future of Online Food Ordering in India
The changes taking effect on September 22 are just one part of a larger transformation in India’s online food delivery market. With GST on delivery and platform fee increases, affordability is being recalibrated, and the definition of “convenient” is evolving.
For users, it means weighing options: continue ordering online and pay the premium, or explore alternatives like self-delivery from local restaurants, meal subscriptions, or cooking at home. For platforms, it’s about maintaining user loyalty while ensuring profitability in a market where operational costs are high.
As the industry adapts to this new reality, one thing is clear: the cost of convenience is rising. The era of ultra-cheap, highly discounted deliveries may soon be a memory. Consumers who have grown accustomed to instant food at minimal cost will now face the challenge of balancing convenience with price.
Conclusion
The combination of the new 18% GST on Swiggy and zomato delivery charges and the rising platform fees on Zomato and Swiggy is fundamentally changing online food ordering in India. Convenience is no longer as cheap as it once was, and customers will feel the impact directly in their wallets. While the Finance Ministry’s aim of standardizing taxation is clear, the ultimate outcome will be determined by how consumers respond to higher costs and whether the convenience of doorstep delivery still outweighs these price increases.
The food delivery sector is at a turning point. How it navigates this period of rising costs could redefine the way India eats online, marking the end of “cheap convenience” and the beginning of a more premium, calculated era in digital dining.
