BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
From online shopping to food delivery and courier services, delivery charges are now a part of almost every purchase. But are these delivery charges taxable under GST? If yes, at what rate? In this guide, we break down the gst on delivery charges, how it applies to different industries, and what sellers and customers need to know.
Yes. As per GST supply rules, delivery, shipping, or transportation charges are considered part of a composite supply when billed along with the main product or service. This means:
| Type of Delivery Service | GST Rate | Applies To |
|---|---|---|
| Delivery charges with product | Same as product | e.g., GST on delivery charges of goods |
| Food delivery platforms (Swiggy/Zomato) | 5% | Collected by platform |
| Courier and logistics service | 18% | Standalone shipping or courier billing |
If you’re an online seller or business delivering goods and charging for shipping:
| Main Product | GST Rate | Delivery Charge GST Rate |
|---|---|---|
| Clothing (₹1000+) | 12% | 12% |
| Electronics | 18% | 18% |
| Books (Exempt) | 0% | 0% (if part of same invoice) |
For platforms like Swiggy and Zomato:
When logistics services are billed separately and not as part of product supply, the following GST rates apply:
| Service | SAC Code | GST Rate |
|---|---|---|
| Courier or parcel delivery | 9968 | 18% |
| Goods transport by GTA (no ITC) | 9965 | 5% |
| Goods transport by GTA (with ITC) | 9965 | 12% |
Businesses can claim Input Tax Credit (ITC) on:
Understanding the gst on delivery charges helps sellers and buyers manage costs and stay tax-compliant. Whether it’s a food order or an eCommerce parcel, delivery services are an integral part of the GST regime and must be handled correctly in invoicing and reporting.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.