--- title: "New GST on Delivery Charges 2026: 18% Rate on Delivery, Shipping" description: "New GST rate on delivery charges in 2026 is 18% on courier and shipping fee charges. Busy auto-applies the right GST slab on every invoice effortlessly." canonical: "https://busy.in/gst-rates/delivery-charges/" author: "Rithesh Bajoriya" published: "2025-05-19T08:38:18.000Z" category: "GST Rates" --- - GST on delivery charges depends on the nature of the supply and how delivery is provided. - Delivery forming part of a composite supply generally follows the GST rate of the principal supply. - Separately supplied courier or local delivery services generally attract 18% GST. - Restaurant services supplied through food-delivery platforms generally attract 5% GST, while separate delivery services may attract 18%. - ITC on delivery charges may be claimed subject to normal GST eligibility conditions. # New GST on Delivery Charges: Logistics and Shipping Tax Rates 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](https://busy.in/gst/) ? If yes, at what rate? In this guide, we break down the **delivery charges HSN code and GST rate**, how it applies to different industries, and what sellers and customers need to know. ## **New GST Rate on Delivery Charges in India** GST on delivery charges in India depends on how the charge is billed. If delivery or shipping is charged along with the main product on the same invoice and forms part of a composite supply, the delivery charge follows the GST rate of the main product. If courier, shipping, or logistics services are billed separately, the applicable GST rate depends on the service classification. ## Delivery Charges GST Rate Comparison | Type of Delivery Service | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | | --- | --- | --- | | Delivery charges with product (as part of composite supply) | **Same as principal supply** | **Same as principal supply** | | Food delivery platforms such as Swiggy and Zomato | **Restaurant service: 5%; separate delivery service: 18%** | **Restaurant service: 5%; separate delivery service: 18%** | | Courier and logistics service billed separately | **18%** | **18%** | | Goods transport by GTA without ITC | **5%** | **5%** | | Goods transport by GTA with ITC | **18%** | **12%** | Get a Free Trial – [Best Accounting Software For Small Business](https://busy.in/accounting-software/) ## GST on Delivery Charges of Goods in India If a seller charges delivery or shipping on the same invoice as the goods, and that charge is naturally bundled with the sale, the GST on delivery charges follows the GST rate of the product. | Main Product | Main Product GST Rate | Delivery Charge GST Rate | | --- | --- | --- | | Clothing priced up to Rs 2,500 | 5% | 5% | | Clothing priced above Rs 2,500 | 18% | 18% | | Electronics | 18% | 18% | | Books that are exempt | 0% | 0% if part of the same composite supply | This is because the delivery charge becomes part of the value of the principal supply. ## GST on Courier and Logistics Services in India When courier or logistics is billed separately and not as part of the goods invoice, GST applies based on the nature of the transport service. | Service | SAC Code | New GST Rate | | --- | --- | --- | | Courier or parcel delivery | 9968 | 18% | | Goods transport by GTA without ITC | 9965 | 5% | | Goods transport by GTA (with ITC) | 9965 | 18% | If freight is part of the same invoice as the goods and qualifies as composite supply, the delivery charge usually follows the goods rate instead of being taxed separately as a logistics service. Live Demo Available Today ## Track Which Parties Still Owe Delivery Charge Payments Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST on Food Delivery Charges** For food ordered through platforms such as Swiggy and Zomato, restaurant service generally attracts 5% GST. The platform is liable to pay GST on the restaurant service in notified cases. If delivery is supplied as a separate local delivery service, it generally attracts 18% GST. ## **Are Delivery Charges Taxable Under GST?** Yes. Delivery, shipping, and transportation charges are taxable under GST. If billed with the main product as part of one supply, the delivery charge usually takes the same GST rate as the product. If billed separately as an independent service, it is taxed according to the service category, such as courier or GTA. Get a Free Trial – [Best Accounting Software For Small Business](https://busy.in/accounting-software/) ## **How to Calculate GST on Delivery Charges** To calculate GST on delivery charges, first determine whether the charge is part of a composite supply with goods or a separately billed delivery service. **Formula:** GST Amount = Taxable Value × GST Rate ÷ 100 Invoice Total = Taxable Value + GST Amount ### **Example 1** Product price: Rs 2,000 Delivery charge: Rs 100 Product GST rate: 5% Taxable value = Rs 2,100 GST = 2,100 × 5 ÷ 100 = Rs 105 Total invoice value = Rs 2,205 ### **Example 2** Courier service billed separately: Rs 500 GST rate: 18% GST = 500 × 18 ÷ 100 = Rs 90 Total invoice value = Rs 590 ### **Example 3** Restaurant food order through platform: Rs 800 GST rate on restaurant service: 5% GST = 800 × 5 ÷ 100 = Rs 40 Total = Rs 840 If a separate delivery fee is charged as a local delivery service, it generally attracts 18% GST and should be calculated separately. ## **Input Tax Credit on Delivery Charges** Businesses can [claim Input Tax Credit](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) (ITC) on: - Courier/shipping invoices under business GSTIN - Freight and delivery services used in supply chain - Logistics billed for B2B supply ## **Conclusion** 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](https://busy.in/gst/gst-fundamentals-all-about-goods-and-services-tax-in-india/) and must be handled correctly in invoicing and reporting. ## About the author **Rithesh Bajoriya** As a Chartered Accountant with over 18 years of experience, I have honed my skills in the field and developed a genuine passion for writing. I specialize in crafting insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, my aim is to share valuable insights that resonate with readers. ## Frequently asked questions ### What is the GST on delivery charges in India? If delivery is bundled with the product, it usually takes the same GST rate as the product. If it is a separate courier or logistics service, it is generally taxed at 18% or as per GTA rules. ### What is the GST rate for courier services? Courier and parcel delivery services generally attract 18% GST. ### Is GST applicable on food delivery charges? Yes. Restaurant service supplied through notified food-delivery platforms generally attracts 5% GST. If a separate delivery service is charged, it generally attracts 18% GST. ### Can a seller charge a different GST rate on delivery than on the product? Not usually, if the delivery charge is part of the same composite supply. In that case, it should follow the main product rate. ### Can ITC be claimed on shipping costs? ITC may generally be available for eligible business shipping and logistics expenses, subject to GST rules and documentation. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)