For an Indian food-delivery order, calculate GST from each taxable service line on the invoice instead of applying one rate to the checkout total. Restaurant service supplied outside specified premises is generally shown at 5% GST (2.5% CGST plus 2.5% SGST), subject to the supplier not claiming input tax credit on the goods and services used to provide it. Local delivery is listed separately at 18%. The services changes took effect on 22 September 2025.
In practical terms, multiply the restaurant-service taxable value by 5%, multiply the local-delivery taxable value by 18%, and add those tax amounts. Do not apply 18% to the entire food amount merely because delivery was included. The exact result depends on the taxable values and treatment of every additional line shown on your invoice.
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The rate change did not make every food-delivery rupee taxable at 18%
The 22 September 2025 services changes created a distinction that is easy to miss at checkout. The meal supplied as restaurant service and the transport of that order are separate services for rate purposes when the invoice identifies them separately. A delivery order can therefore contain a restaurant-service line taxed at the restaurant rate and a local-delivery line taxed at the delivery rate.
The Central Board of Indirect Taxes and Customs (CBIC) rate table lists restaurant service other than at specified premises at 5% in total, split into 2.5% CGST and 2.5% SGST. That entry is conditional: the supplier must not take input tax credit for goods and services used to supply the restaurant service. The Ministry of Finance’s 2025 PIB FAQ identifies local delivery as an 18% service. The date for the services changes is given in the GST Council’s 2025 materials as 22 September 2025.
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Those figures answer the common question “Is GST on food delivery 5% or 18%?”: it can be both, but on different taxable components. A precise calculation is impossible from a single all-inclusive order total unless the invoice also explains how that total is allocated.
Read the invoice before doing any arithmetic
Use the tax invoice or receipt, not the menu price alone. Look for a taxable-value column and for separate descriptions such as restaurant service, local delivery, delivery fee, platform fee, packaging, discount or other charges. The taxable value is the amount to which the stated rate applies; it is not always the same as the amount you paid after tax, discounts and fees.
Restaurant-service taxable value
Find the line representing the prepared food or restaurant service. If it is supplied outside specified premises and the invoice applies the ordinary restaurant-service entry, use the 5% total rate only when the stated no-input-tax-credit condition is met. A line may show the tax as two components—CGST and SGST—rather than as one 5% number. Add those components to verify the total.
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Local-delivery taxable value
Find a distinct local-delivery or delivery-service line. The listed rate for this service is 18%. If the invoice splits that tax into CGST and SGST, the component percentages may appear separately; use the total rate shown for the line and check that the arithmetic matches the invoice.
Other lines need their own treatment
Packaging charges, platform or service fees, small-order charges, discounts, tips and bundled amounts cannot all be assigned one universal rate from the information available here. Their treatment depends on how the supplier characterizes the line and how the invoice presents it. Keep each line separate unless the invoice or an applicable tax rule establishes that it forms part of a particular taxable supply.
Step-by-step calculation when the invoice gives taxable values
- Copy each taxable value. Record the restaurant-service taxable value and the local-delivery taxable value exactly as displayed. Note whether each amount is before GST or already includes GST.
- Calculate restaurant GST. For a pre-GST restaurant taxable value, use
restaurant taxable value × 5 ÷ 100. The resulting amount comprises the CGST and SGST components shown for that supply. - Calculate delivery GST. For a pre-GST local-delivery taxable value, use
delivery taxable value × 18 ÷ 100. - Calculate the combined tax. Add the two component taxes. Then review every other invoice line to see whether its own taxable value and tax are stated.
- Reconcile with the receipt. Add the taxable values, taxes and any non-tax charges to see whether they produce the final amount charged. Small differences can arise from rounding; a material difference should be queried with the platform or restaurant.
Keep the calculation tied to the invoice’s labels. Substituting the menu subtotal for the stated restaurant taxable value, or treating a post-tax amount as a pre-tax value, will produce the wrong result even if the percentages are correct.
Worked example: separate restaurant and delivery lines
Assume an invoice shows ₹400 as the restaurant-service taxable value and ₹40 as the local-delivery taxable value. Both amounts are stated before GST, and no other charge is included in this illustration.
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| Invoice component | Taxable value | Rate | GST calculation | GST amount |
|---|---|---|---|---|
| Restaurant service | ₹400 | 5% | ₹400 × 5% | ₹20 |
| Local delivery | ₹40 | 18% | ₹40 × 18% | ₹7.20 |
| Total | ₹440 | — | ₹20 + ₹7.20 | ₹27.20 |
This is an arithmetic illustration based on the listed rates. It does not establish the tax treatment of packaging, platform fees, discounts or any other charge that might appear on a real order. If those lines exist, calculate or verify them independently rather than folding them into the ₹440 figure.
How to extract GST when an amount already includes tax
An invoice may label a component as “inclusive of GST.” In that case, multiplying the inclusive amount by 5% or 18% overstates the tax because the amount already contains the tax. First identify which service the inclusive amount represents, then use the embedded-tax formula:
- For a restaurant-service amount inclusive of 5% GST:
inclusive amount × 5 ÷ 105. - For a local-delivery amount inclusive of 18% GST:
inclusive amount × 18 ÷ 118.
For example, if a separately identified restaurant-service line is ₹105 inclusive of GST, the embedded tax is ₹105 × 5 ÷ 105 = ₹5, leaving ₹100 as the pre-tax value. If a separately identified delivery line is ₹118 inclusive of GST, the embedded tax is ₹118 × 18 ÷ 118 = ₹18, leaving ₹100 before tax.
Do not apply either formula to a mixed checkout total. A single total containing food, delivery and fees does not have one valid embedded-tax rate. You need the component allocation first.
Is the order taxed at 5% or 18%?
| Question | Use this approach |
|---|---|
| What rate is listed for restaurant service outside specified premises? | 5% total, shown as 2.5% CGST plus 2.5% SGST, subject to the no-input-tax-credit condition. |
| What rate is listed for local delivery? | 18% on the local-delivery taxable value. |
| The checkout displays one combined amount with no taxable split. Which rate applies to the whole amount? | Neither rate can safely be applied to the whole total. Request the invoice breakdown or consult the operative tax rule for the transaction. |
| The restaurant is at a specified premises. | Do not assume the ordinary 5% restaurant entry applies. The specified-premises provisions must be checked for that supply. |
| There are packaging, platform or other fees. | Use the rate and taxable value stated for each line. The available official material does not establish one universal treatment for every such charge. |
The fact that an order arrived by courier does not, by itself, convert the restaurant service into an 18% supply. The delivery service is the part associated with the 18% entry when it is separately identified.
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Who is responsible for GST on delivery booked through an app?
The liability question is separate from the rate question. The GST Council’s September 2025 schedule and the PIB FAQ address local-delivery services supplied through an electronic commerce operator (ECO) under section 9(5) of the Central Goods and Services Tax Act.
Unregistered delivery supplier in the specified section 9(5) case
When the person supplying the local-delivery service is not liable for GST registration and supplies through an ECO, the ECO is liable to pay the GST. The customer still sees the delivery charge and tax treatment on the transaction documentation, but the statutory payer is the operator in that situation.
Registered local-delivery supplier
Where a registered person supplies the local-delivery service through an ECO, the registered supplier pays the tax. The operator’s involvement does not by itself move the liability to the operator when the supplier is registered under the condition described in the FAQ.
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Why the distinction matters to a customer
Liability determines which business accounts for the tax; it does not authorize a customer to replace the invoice rate with a guessed rate. Check the supplier details, the delivery line and the tax components on the invoice. The section 9(5) rule is about who remits the tax, while the 18% listing addresses the rate for the local-delivery service.
What to do when the invoice does not show a split
A platform may show a food subtotal and a final amount without clearly identifying taxable values. That display is not enough to calculate the GST precisely. Use this checklist before concluding that the platform charged too much or too little:
- Open the downloadable tax invoice or detailed receipt, not only the order summary.
- Check whether the restaurant-service and delivery-service suppliers are identified separately.
- Look for taxable-value, CGST, SGST or IGST columns and any “inclusive” wording.
- Identify whether discounts reduce a stated taxable value or are shown as a separate adjustment.
- List packaging, platform, convenience and small-order fees separately.
- Ask the platform or restaurant for the component taxable values if the document gives only a combined figure.
- Retain the invoice, order date and transaction reference when requesting a correction.
If the response still does not explain the allocation, do not reverse-engineer a tax amount from the grand total. The correct next reference is the operative notification or other legal instrument governing the transaction, rather than an informal assumption based on the delivery charge.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common calculation mistakes and their fixes
Applying 18% to the food subtotal
Mistake: Multiplying the entire meal value by 18% because the order was delivered. Fix: Separate the restaurant-service line from the local-delivery line and apply each line’s stated rate.
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Mistake: Taking a tax-inclusive figure and multiplying it by the rate. Fix: Use the embedded-tax formula for the identified component, or obtain the pre-tax value from the invoice.
Ignoring the no-input-tax-credit condition
Mistake: Treating every restaurant transaction as automatically eligible for the ordinary 5% entry. Fix: Confirm that the supplier’s invoice treatment reflects the condition that input tax credit is not taken for goods and services used to provide that restaurant service.
Assuming every fee follows the restaurant rate
Mistake: Adding packaging or platform fees to the food value and taxing the combined figure at 5%. Fix: Follow the characterization and taxable value shown for each line; there is no universal rate established here for all additional fees.
Confusing tax liability with the customer’s calculation
Mistake: Assuming the operator must pay every tax whenever an order is placed through an app. Fix: Apply the section 9(5) liability rule only to the circumstances described: an ECO-facilitated local-delivery supply where the supplier’s registration status determines who pays.
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Mistake: Applying pre-22 September 2025 treatment to a later order. Fix: Use the order date and the rate information applicable from 22 September 2025, then verify the invoice’s stated treatment.
Specified premises and unusual restaurant arrangements
The ordinary 5% restaurant-service entry is expressly described for supplies other than at specified premises. “Specified premises” is therefore not a cosmetic label; it can change which provision must be examined. A delivery order does not provide enough information by itself to determine whether the restaurant falls within that category.
If the invoice or supplier identifies specified-premises treatment, do not force the ordinary outside-specified-premises calculation onto it. Check the applicable notification and the supplier’s tax details for that transaction. The available rate materials establish the ordinary entry and the clarification, but they do not support a blanket claim that every specified-premises order has one particular alternative rate.
How to document a calculation for a dispute or reimbursement
When you need to challenge an invoice, make the arithmetic auditable. Save a copy of the invoice and create a short worksheet with these columns:
| Line description | Taxable value | Inclusive or exclusive | Rate shown | Calculated tax | Invoice tax |
|---|---|---|---|---|---|
| Restaurant service | As stated | Mark one | 5% only where the entry and condition apply | Value × rate, or embedded formula | Copy from invoice |
| Local delivery | As stated | Mark one | 18% | Value × rate, or embedded formula | Copy from invoice |
| Other line | As stated | Mark one | Use invoice treatment | Do not guess | Copy from invoice |
Compare the calculated and invoiced amounts after allowing for documented rounding. If a line has no rate, taxable value or tax component, identify that omission specifically in your request rather than claiming that the entire order should be taxed at 5% or 18%.
What the official explanations establish—and what they do not
The CBIC rate table establishes the ordinary restaurant-service entry and its no-input-tax-credit condition. The GST Council’s 2025 release gives the services-change date and summarizes the recommendations. The Ministry of Finance PIB FAQ explains the 18% local-delivery rate and the section 9(5) payment responsibility in the ECO scenarios.
A council press release is a summary of recommendations; the release itself notes that notifications or amendments give those recommendations legal effect. For an unusual, high-value or disputed transaction, use the operative legal instrument and the invoice facts for the relevant date. Explanatory material should not be used to invent a rate for a fee or bundle that the invoice does not identify.
A practical final check before you pay or dispute
- Confirm the order date is on or after 22 September 2025 if you are applying the changed services treatment.
- Separate restaurant service, local delivery and every other listed charge.
- Mark each component as tax-inclusive or tax-exclusive.
- Apply 5% only to an eligible restaurant-service taxable value outside specified premises and subject to the no-input-tax-credit condition.
- Apply 18% to the local-delivery taxable value.
- Use the embedded-tax formula for an identified inclusive line, never for a mixed total.
- Check who is liable under section 9(5) when an ECO handles local delivery, based on the delivery supplier’s registration status.
- Request a detailed invoice or consult the operative notification when the platform does not disclose the allocation.
The reliable method is therefore component-based: identify what each line represents, use the rate and taxable value attached to that line, and leave unclassified charges unresolved until the invoice or governing rule supplies the missing treatment.
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