GST on delivery through food, grocery and shopping apps falls to 5% from 1 November 2026
The Finance Ministry notified 5% GST without input credit on app delivery services from 1 November 2026, down from 18%. What changes on your bill.
The Finance Ministry has now notified the cut in GST on delivery services that the GST Council recommended on 8 October 2026. It starts on 1 November 2026. Our GST Council guide had said the cut was waiting for a notification. That wait is over.
What the notifications say
Notification No. 06/2026-Central Tax (Rate), dated 27 October 2026, sets GST on delivery services at 5% (2.5% central tax plus 2.5% state or union territory tax), on the condition that the supplier does not claim input tax credit. This applies to delivery services supplied through an e-commerce app by a delivery partner who is not required to register for GST, and to delivery services in relation to goods sold through an app. The earlier rate was 18%.
Notification No. 09/2026-Central Tax (Rate), also dated 27 October, widens the earlier entry from "local delivery" to "delivery services, other than postal and courier services". Matching notifications were issued under the IGST and UTGST laws. All of them take effect on 1 November 2026.
What it means for you
- GST on the delivery charge falls. On a delivery fee shown on a food, grocery or shopping app, GST drops from 18% to 5% for supplies made on or after 1 November 2026.
- Your total may not fall by the same amount. Apps set their own delivery, handling and platform fees. Check the GST line on your bill after 1 November.
- The food or goods do not get cheaper from this. GST on restaurant food, groceries and products stays as it was.
- Courier and post. Postal and courier services stay at 18%, even when you book them through an app.
Electric cabs and rentals
The same notification adds an option for passenger transport by electric vehicle and for renting electric vehicles when battery charging is part of the price. The operator can charge 5% GST with limited input tax credit, or the normal 18%. We read this part from tax-portal summaries of the notification, not from the gazette text itself.
Hotels and catering
The notification also changes input tax credit conditions for hotels, restaurants and outdoor catering. These are business rules and do not change the GST you pay on a hotel bill or a meal.
Sources: TaxGuru: Notification No. 09/2026-Central Tax (Rate), G.S.R. 945(E), 27 October 2026, A2Z Taxcorp: delivery services entry and 5% rate from 1 November 2026, TaxGuru: Notification 06/2026 ITC conditions for hotels, catering, EV transport and delivery, PIB: 57th GST Council recommendations
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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