Ordering food online is super easy and convenient. With just a few clicks, you can have your favorite biryani or pizza delivered straight to your door, especially on a rainy evening. But while you enjoy your meal, you might not realize that your bill is quietly growing because of hidden taxes and extra charges.
Let’s break down what really happens when you order food online and where your money actually goes.
Understanding the Taxes on Your Food Order
When you place a food order online, the price you see for the food isn’t the final amount you’ll pay. There are several extra charges added to your bill.
GST on Food
- Every food order has a 5% GST (Goods and Services Tax) added to it.
- 2.5% goes to the central government (CGST).
- 2.5% goes to the state government (SGST).
- 2.5% goes to the central government (CGST).
- For example, if your food costs ₹500, you will pay ₹25 as GST.
Delivery Fees
- Delivery charges are usually between ₹40 and ₹50.
- Surprisingly, you don’t pay GST on the delivery fee. This is because the fee is often given to the delivery partner or a third-party company, not the restaurant.
The Extra Platform Fee
Recently, food delivery apps started adding a new “platform fee” or “convenience charge.” This is usually between ₹5 and ₹30 per order.
- The platform fee is not just a small extra amount—it comes with its own tax.
- An 18% GST is added to the platform fee.
- For example, if the platform fee is ₹20, you pay ₹3.60 as GST on it.
- For example, if the platform fee is ₹20, you pay ₹3.60 as GST on it.
Why Are These Charges There?
- The government made food delivery apps collect GST directly to make sure taxes are paid properly.
- The 5% GST on food and 18% GST on platform fees are required by law.
- These rules are meant to stop tax leaks and make everything more transparent for the government.
But for customers, it can feel confusing because all these small charges add up, making your meal more expensive than you expected.
What Can You Do as a Customer?
Here are some simple tips to help you manage these extra charges:
- Check Your Bill: Always look at the breakdown of charges before paying.
- Compare Apps: Different apps might have different platform fees.
- Order Directly: Sometimes, ordering straight from the restaurant can be cheaper.
- Watch Out for Extras: Be careful with tips, surge pricing, and packaging fees—they can add up quickly.
Ordering food online is definitely convenient, but it’s important to know where your money is going. Each time you order, you’re not just paying for your meal—you’re also paying taxes and extra fees that support the system.
So, next time your bill seems higher than expected, remember: you’re not just feeding your hunger, but also paying your share in taxes and service charges. Stay informed, check your bill, and enjoy your meal wisely!
