Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesFood and app fees are different taxable services. For an ordinary standalone restaurant, including takeaway, the listed GST rate is generally 5% without input tax credit (ITC). A food-delivery app’s own platform service is a separate line that the Ministry of Finance said is taxed at 18%. Since 1 January 2022, the electronic commerce operator (ECO) has paid GST on restaurant service supplied through its app under section 9(5) and issues that restaurant-service invoice. Delivery charges need separate checking because the government said their GST treatment was still under examination in its 1 April 2025 answer.
That is why one checkout can legitimately show 5% on restaurant service and 18% on a platform-service fee. The reliable test is the itemised invoice: identify each line, its supplier, taxable value, GST rate and invoice number instead of applying one rate to the entire order.
As an Amazon Associate I earn from qualifying purchases.
Why one order can show two GST rates
GST follows the nature of each supply, not simply the fact that all charges were paid at one checkout. A restaurant supplies food service. A delivery app may supply its own platform service. Delivery, packaging or another charge can be a further line. Each line must be classified before its rate is applied.
Ordinary restaurant service is generally 5%
The Goods and Services Tax Council’s 2024 rate table lists standalone restaurants at 5% GST without ITC. The listing includes takeaway and standalone outdoor catering or food-delivery service. “Without ITC” means the supplier uses the concessional rate while not claiming input tax credit for inputs used in that service; it does not mean a customer must calculate or claim ITC.
#1 Best Overall
The 5% entry is a rate classification for the restaurant service itself. It does not automatically determine the rate of an app’s separate fee, nor does it settle the treatment of every delivery line.
Some hotel restaurants are a separate category
The same Council table lists certain restaurant services in hotels at 18% with ITC when the hotel meets or exceeds the specified room-tariff threshold. The applicable threshold and the establishment’s classification matter. A customer should therefore avoid assuming that every restaurant meal is 5%; check whether the bill identifies a qualifying hotel restaurant and the applicable rate.
The app’s platform service is not restaurant food
On 1 April 2025, the Ministry of Finance stated in a parliamentary answer that other services provided by food-delivery apps, including platform services, are levied GST at 18%. A platform fee pays for the app’s own service—such as enabling discovery, ordering, payment or coordination—rather than changing the GST rate of the restaurant service supplied through it.
When an app labels a charge “platform fee,” “platform service” or a similar description and shows 18% GST, that line reflects the app’s service. It should not be merged with the food value merely because both appear on the same checkout page.
Who charges and pays GST on an app order?
Section 9(5) shifted restaurant-service liability to the ECO
The GST Council recorded that restaurant service supplied through an electronic commerce operator was notified under section 9(5), effective 1 January 2022. For that notified service, the ECO—not the restaurant—pays the GST to the government. The ECO is the platform operating the electronic marketplace or ordering system.
This mechanism is specific. It applies to the notified restaurant service supplied through the ECO. It does not turn every product or fee visible in the app into an ECO-paid supply.
The ECO issues the restaurant-service invoice
GST Council implementation guidance states: “The invoice in respect of restaurant service supplied through ECO under section 9(5) will be issued by ECO.” Therefore, the restaurant-service portion of an app order may show the platform as the invoicing party even though the food was prepared by a restaurant. Look for the ECO’s legal name, GSTIN and invoice details on that portion of the bill.
Other taxable supplies keep their ordinary liability rules
CBIC guidance explains that section 9(5) shifts payment to the ECO only for notified services. For other taxable supplies, the supplier remains liable and the ECO continues its tax-collected-at-source (TCS) role where applicable. A grocery item, merchandise, or another non-notified supply in the same cart is therefore not automatically covered by the restaurant-service rule.
How to read each line on your bill
Use the following sequence before deciding that GST has been charged incorrectly:
- Separate the food value. Identify the restaurant-service description, taxable value and GST amount. For an ordinary standalone restaurant service, the Council’s listed rate is 5% without ITC.
- Identify the invoicing party. For restaurant service supplied through the app under section 9(5), the ECO should issue the invoice. Record its legal name, GSTIN, invoice number and date.
- Find an app-service line. Search for “platform service,” “platform fee” or equivalent wording. The Ministry of Finance’s 1 April 2025 answer places platform services from food-delivery apps at 18% GST.
- Keep delivery separate. Do not fold a delivery charge into the food value or assume it has the platform fee’s 18% rate. The government said clarification of GST on delivery of food in app orders was referred for further examination by the 55th GST Council meeting.
- Check packaging and other charges. Packaging, convenience or another charge should have its own description and tax treatment where the app bills it separately. The label and taxable value are more useful than the position of the line on the screen.
- Check arithmetic. GST is calculated on the taxable value of the relevant line. A 5% food line and an 18% platform line should not be added together first and then taxed at one blended rate.
- Save the complete invoice. Keep the itemised PDF, email or downloadable bill, including any page that identifies the restaurant and the ECO. A payment screenshot alone may omit the tax details needed for a correction request.
- Compare checkout and invoice. Promotional discounts, tip fields and wallet credits can change the taxable value. The final invoice—not an earlier cart estimate—controls what was actually billed.
Worked example: why the percentages look different
Consider an illustrative order from an ordinary standalone restaurant. Suppose the invoice shows a restaurant-service taxable value of ₹500 and a separate platform-service value of ₹20. Applying the listed rates to those separate values would produce ₹25 GST on the food line at 5% and ₹3.60 GST on the platform line at 18%. The two percentages differ because the supplies differ; the example does not establish a rate for any delivery charge.
If the same invoice adds a delivery line, read its description, taxable value and stated GST rate rather than extending the 5% or 18% calculation by assumption. The official position described on 1 April 2025 was that delivery-of-food treatment was still being examined.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →A qualifying hotel restaurant may show 18% with ITC on its restaurant service instead of the ordinary standalone-restaurant entry. The establishment’s category and the invoice description determine which classification applies.
Restaurant ordering directly versus ordering through an app
The practical differences are easiest to see by checking the same five points on each receipt.
| What to compare | Direct restaurant order | Order placed through an ECO |
|---|---|---|
| Restaurant-service GST | Ordinary standalone restaurant service is listed at 5% without ITC; qualifying hotel restaurant service can be 18% with ITC. | The same restaurant-service classification generally applies, while the ECO pays under section 9(5) for the notified service from 1 January 2022. |
| Separate platform-service fee | No app platform-service line is created by the restaurant’s own direct sale. | An app may add a platform-service line; the Ministry of Finance states this service is taxed at 18%. |
| Delivery-fee treatment | Read the restaurant’s invoice and the description of any delivery charge. | Keep the delivery line separate; the government said app-order delivery treatment was under further examination as of 1 April 2025. |
| Invoice issuer for restaurant service | The restaurant normally supplies and invoices its own service. | The ECO issues the invoice for restaurant service supplied through it under section 9(5). |
| Itemisation to verify | Food value, restaurant GST and any separately described charge. | Food value, ECO restaurant-service invoice, platform-service fee, delivery line and any other supply. |
This comparison does not mean an app order is always more expensive or that a direct order never has a delivery charge. It shows which questions the invoice must answer.
Delivery charges: the line that cannot be classified by guesswork
Why “delivery” is not automatically 5% or 18%
A delivery charge can be displayed beside food and platform fees, but its tax treatment depends on how the supply is described and classified. The Ministry of Finance’s 1 April 2025 parliamentary answer said a proposal to clarify GST on delivery of food in app orders had been referred for further examination by the 55th GST Council meeting.
That statement is the latest official position identified here. It is not a permanent blanket rule assigning every delivery line one rate. A platform may update its invoice format or apply a later clarification, so use the rate printed on the dated invoice and check current GST notifications when the amount is material.
How to review a delivery line
- Read the exact label: “delivery fee,” “delivery service,” “shipping,” or another description can signal how the platform has treated it.
- Check whether the line has its own taxable value, GST rate and GST amount.
- See whether the delivery amount is included in a combined line with platform service. If it is combined, ask the platform for a component-wise explanation.
- Compare the final invoice with the order confirmation and any revised invoice issued after cancellation, substitution or a distance-based fee.
Mixed carts and multiple supplies
An app order may contain restaurant food, a platform service, delivery and other goods or services. GST Council guidance says the ECO should raise separate billing when restaurant service is combined with other supplies. That separation lets the customer see which amount is covered by section 9(5) and which is not.
CBIC’s explanation is important for mixed carts: the ECO’s section 9(5) liability extends only to notified services. For other taxable supplies, the underlying supplier remains liable, while the ECO performs its TCS role where the law requires it. A single payment transaction therefore can involve more than one supplier and more than one invoice.
Rank #4
What a well-structured mixed-order record contains
- A restaurant-service invoice issued by the ECO, with the restaurant name or details and the applicable GST.
- A separate platform-service entry identifying the app’s service and its 18% GST where that classification is used.
- A separately described delivery charge with the rate shown on the current invoice.
- Separate invoices or supplier details for goods or services that are outside the notified restaurant-service category.
Common mistakes customers make
Applying 18% to the entire checkout
The 18% platform-service rate does not convert ordinary restaurant food into an 18% supply. Calculate each taxable line separately.
Free tools Windows power users keep installed
One-click scans. No signup required.
Assuming the restaurant must collect the app-order GST
For notified restaurant service supplied through an ECO, the ECO is liable from 1 January 2022 and issues the invoice. The restaurant’s role in preparing the meal does not by itself determine who remits that GST.
Assuming every delivery fee is covered by the food rate
The official answer identified delivery treatment as an issue under examination. A delivery line needs its own invoice description and rate check.
Using a cart screenshot as proof
Cart pages can change when discounts, taxes or fees are recalculated. Preserve the final itemised invoice and payment record.
Treating all items in a mixed cart as restaurant service
Section 9(5) covers notified services, not every supply an app can sell. Look for separate supplier and invoice information for non-restaurant items.
The Tool Desk
Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →What to do when the GST looks wrong
- Download the final invoice. Obtain the tax invoice rather than relying on the order total.
- Mark the disputed line. Note the description, taxable value, GST rate, GST amount, invoice number and date.
- Ask a precise question. Request the platform to explain whether the line is restaurant service, platform service, delivery or another supply, and which entity issued that invoice.
- Request a corrected invoice or credit note. If the platform acknowledges a classification or arithmetic error, ask for the formal document showing the adjustment.
- Keep the correspondence. Retain chat transcripts, email replies and the original invoice with the order record.
- Escalate with complete details. If the platform does not resolve the issue, use the applicable consumer or tax grievance channel and attach the itemised invoice. Avoid alleging evasion solely because two different GST rates appear; the rates can be correct when the supplies are different.
Dates and rules to keep in mind
- 2024: The GST Council rate table lists ordinary standalone restaurant service, including takeaway and standalone outdoor catering or food-delivery service, at 5% without ITC. It also lists certain hotel restaurants at 18% with ITC when the specified room-tariff threshold is met.
- 1 January 2022: Restaurant service supplied through an ECO became subject to the section 9(5) arrangement under which the ECO pays the GST and issues the restaurant-service invoice.
- 1 April 2025: The Ministry of Finance stated that other food-delivery-app services such as platform services are taxed at 18%, and reported that delivery-of-food GST clarification had been referred for further examination by the 55th GST Council meeting.
- At the time you order: GST Council recommendations, notifications and clarifications can change rates or classifications. The dated invoice and the current official notification should govern a dispute.
Bottom line for customers
A 5% restaurant-service line and an 18% platform-service line can both be valid on one app order because they pay for different supplies. For ordinary standalone restaurant service, the listed rate is 5% without ITC; the ECO pays that restaurant-service GST under section 9(5) from 1 January 2022 and issues the invoice. The app’s own platform service is identified by the Ministry of Finance as an 18% service. Delivery charges remain a separate classification to verify, not a rate to guess. Itemised billing is the customer’s best protection: identify the supplier, description, taxable value, rate and invoice for every line.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
