The Central Board of Indirect Taxes and Customs (CBIC) has firmly refuted viral social media claims alleging the imposition of a brand-new Goods and Services Tax (GST) on food delivery services. In an official clarification, the board emphasized that there is no fresh tax burden; instead, the applicable GST rate for delivery services provided via e-commerce platforms has actually been reduced from 18% to 5%.
What the CBIC Clarified
Addressing misconceptions circulating online, the CBIC took to social media to set the record straight. The board stated that the claims suggesting a new tax imposition are “wrong and factually incorrect.”
According to the official statement:
Previous Rate: Delivery services—such as those facilitated by popular food delivery applications—were earlier taxed at a higher rate of 18%.
Revised Rate: Following recommendations from the 57th GST Council meeting, the tax rate on these delivery services has been slashed to a uniform 5% across all e-commerce platforms.
Curbing Misinformation
The clarification aims to eliminate confusion among consumers, restaurants, and businesses regarding the updated GST framework for digital delivery models. The CBIC has urged the public and social media users to verify facts before sharing, cautioning against the propagation of misleading tax rumors.
With this rate adjustment, users ordering meals through food delivery apps will see a tax relief rather than an extra financial levy, aligning delivery services with the broader tax rationalization measures backed by the GST Council.
