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Ordering in food at the click of a button may not be as pocket-friendly anymore, with the Goods and Services Tax (GST) on delivery charges hiked to 18 per cent from September 22. 

While the GST Council revamped the prevailing GST structure from the previous four-tier to a two-tier one with only 5 per cent and 18 per cent tax slabs remaining, some items and services will see a hike in their duties, such as delivery charges, which will now be charged at 18 per cent. 

However, what makes things worse is the increase in platform fees on these platforms which was brought into effect before the GST overhaul.

Swiggy hiked its platform fee to ₹15, inclusive of GST, in select markets, while rival Zomato raised its platform fee to ₹12.50 (excluding GST). Meanwhile, the third-largest food delivery player, magicpin, has also revised its platform fee to ₹10 per order, in line with broader industry trends, making it expensive for millions of food delivery consumers.

Estimates suggest that the additional burden on account of 18 per cent GST to be levied on delivery charges from September 22 is expected to add roughly ₹2 per order for Zomato users and ₹2.6 for Swiggy customers.

 

Also Read: Swiggy raises platform fee in ‘high-demand’ areas

Both Swiggy and Zomato did not respond to queries on the tax changes and hiked platform fees.

A magicpin spokesperson, however, said that it has already been paying 18 per cent GST on its food-delivery costs.

"Recent GST changes do not impact our cost structure. Thus, for consumers, there would be no impact of the GST increase. Our platform fees will remain at ₹10 per order, which is also the lowest among major food delivery companies," the spokesperson added.

Platform fees have emerged as an additional source of revenue for food delivery players in the recent past.

The simultaneous hikes by Zomato, Swiggy and magicpin underline a growing trend of rising costs in India's food delivery sector, raising questions about whether affordability and convenience can still go hand in hand for millions of customers.