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CBIC confirms uniform 5% GST on cab and delivery platforms including Swiggy, Zomato, Ola and Uber
CBIC clarified a uniform 5% GST applies to cab aggregators such as Ola and Uber and delivery platforms including Swiggy, Zomato, Flipkart and Amazon, regardless of business structure. GST rate changes will happen once a year, effective April 1, and the effective GST rate is 10.84%.
Channel facts
Figures from NDTV Profit,
| Revenue growth over preceding three months: | 15% |
|---|---|
| ITC eligible on or after: | April 1, 2027 |
| GST collection milestone not estimated: | Rs 3 trillion |
What it means for online and offline
Retailers selling through Swiggy, Zomato, Flipkart or Amazon should assume a uniform 5% GST on platform services regardless of business structure, review fee and pricing pass-through now, and prepare for input tax credit eligibility flagged from 1 April 2027 and for rate changes only on 1 April each year.
Signals to track
- Any further CBIC circular or FAQ on how the 5% applies across business structures
- Changes to delivery, platform or convenience fees at Swiggy, Zomato, Ola and Uber after the clarification
- Platform commentary or results on order volumes and take rates after the GST change
- Industry representations or court filings challenging the uniform 5% rate or ITC treatment
- Guidance on ITC eligibility ahead of 1 April 2027
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Swiggy and Zomato are likely to adjust the fee line items shown at checkout so the 5% GST is passed through to customers in whole or in part.
- Ola and Uber are likely to update fare and fee breakdowns for the uniform 5% rate and to tell driver partners how it affects their earnings.
- Flipkart and Amazon may review how delivery-related charges are structured and invoiced, since the clarification names them alongside the food and ride platforms.
- Industry bodies and platforms are likely to lobby CBIC and the GST Council for clarity on ITC before the 1 April 2027 date.
- CBIC and the GST Council are likely to keep rate changes to the once-a-year 1 April cycle, which gives platforms and merchants a predictable calendar for repricing.