Food Delivery May Get Costlier As Delivery Fees Brought Under 18% GST

Reports suggest that food delivery services may become more expensive under GST 2.0 as delivery charges could attract 18% GST. Currently, food items ordered via aggregators are taxed, but delivery fees are often exempt or ambiguously treated. The proposal aims to remove classification gaps and ensure uniformity in taxation across supply chains. For consumers, this could mean higher overall costs for online food orders, while delivery platforms would need to update billing and compliance systems. Industry stakeholders argue that the move may discourage smaller orders and impact demand in the competitive food-tech sector. However, tax experts highlight that clarity will benefit long-term compliance and reduce litigation risks. The change underscores the government’s intent to streamline GST and plug revenue leakages.