Online food delivery through Swiggy and Zomato has become a major part of restaurant business. However, many restaurant owners are confused about GST liability, ITC eligibility, and return filing for these transactions.
This blog explains the GST treatment of Swiggy & Zomato orders in simple, practical terms, specifically for food & beverage businesses.
🍽️ Nature of Supply – Restaurant Service via Swiggy & Zomato
When a restaurant supplies food through Swiggy or Zomato, it is still treated as restaurant service under GST law.
Mode of supply: Online (E‑commerce Operator)
Nature of service: Food & Beverage (Restaurant Service)
Applicable GST Rate
GST @ 5%
Input Tax Credit (ITC) – NOT allowed
This condition is mandatory when supplying food through Swiggy or Zomato.
👥 Who Pays GST on Food Orders?
Under Section 9(5) of the CGST Act:
Swiggy / Zomato collects and pays 5% GST on food value to the Government
Restaurant does not pay GST on food value for online orders
However, the restaurant must still report the sales value in GST returns.
❌ ITC Not Allowed – Very Important Rule
If your business activity is only food & beverages, and you charge 5% GST, then:
No Input Tax Credit is allowed on any purchase or expense, even if GST is charged on the invoice.
This applies fully to Swiggy and Zomato orders.
🚫 ITC NOT Allowed on Swiggy & Zomato Related Expenses
Restaurants cannot claim ITC on the following expenses related to online orders:
Online Platform Expenses
Swiggy / Zomato commission
GST charged @18% on Swiggy / Zomato commission
Cancellation charges
Advertisement or promotional charges billed by platforms
Food & Kitchen Expenses
Raw materials (rice, oil, vegetables, meat, milk)
Packaging materials used for delivery
LPG / cooking gas
Kitchen equipment & repairs
Other Business Expenses
CA / accounting fees
POS or billing software
Advertising & marketing expenses
Furniture, tables, chairs, AC, refrigerator
👉 Even though GST is charged on these invoices, ITC is blocked.
📊 Example – How Settlement Works
Order value collected from customer: ₹1,000
Commission charged by Swiggy/Zomato (20%): ₹200
GST on commission @18%: ₹36
Settlement received by restaurant: ₹764
GST Treatment
Sales to be reported: ₹1,000
GST payable by restaurant: NIL
GST on commission: Expense (No ITC)
📘 How to Report Swiggy & Zomato Sales in GST Returns
GSTR‑1
Report gross food sales (before commission)
Declare under Table 15 – Supplies made through E‑commerce Operators
Mention Swiggy / Zomato GSTIN
GSTR‑3B
Show sales value under Table 3.1(c)
GST payable: NIL (already paid by ECO)
ITC tables: NIL
🚨 Common Mistakes by Restaurants
Claiming ITC on Swiggy/Zomato commission GST
Reporting only settlement amount as turnover
Missing Table 15 in GSTR‑1
Assuming ITC is allowed on CA fees or software
These errors often lead to GST notices and reversals with interest.
🧠 Simple Summary
For restaurants supplying food through Swiggy or Zomato and charging GST at 5%, Input Tax Credit is not allowed on any expense, including platform commission GST.
✅ Professional Tip
Restaurants should:
Download monthly Swiggy/Zomato reports
Reconcile gross sales vs settlements
Avoid ITC claims completely
Take professional review before filing GST returns
