New GST on Delivery Charges: Logistics and Shipping Tax 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.
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 delivery charges HSN code and GST rate, how it applies to different industries, and what sellers and customers need to know.
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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% |
Type of Delivery Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Type of Delivery Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Type of Delivery Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Type of Delivery Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Type of Delivery Service
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
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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 |
Main Product
Main Product GST Rate
Delivery Charge GST Rate
Main Product
Main Product GST Rate
Delivery Charge GST Rate
Main Product
Main Product GST Rate
Delivery Charge GST Rate
Main Product
Main Product GST Rate
Delivery Charge GST Rate
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% |
Service
SAC Code
New GST Rate
Service
SAC Code
New GST Rate
Service
SAC Code
New GST Rate
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.
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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.
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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 (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 and must be handled correctly in invoicing and reporting.
