The latest GST changes, which mandate Swiggy and Eternal to pay 18% GST on delivery charges collected from customers, are unlikely to materially affect the food delivery and quick commerce sector, according to experts. They believe that stronger consumption trends—driven by GST rate cuts on consumer goods and the rapid adoption of quick commerce—will offset the additional tax burden.
Analysts expect the overall impact on both companies to be negligible, noting that the stocks remain attractive ahead of the festive season, when consumption is set to rise. Under the new regime, the government has clarified that delivery fees charged to customers are taxable, and platforms like Swiggy and Zomato will be liable to pay. Earlier, GST was not consistently levied on every order as platforms were not directly liable. Reports suggest that the companies will now pass on the 18% GST cost fully to customers.