TCS, TDS and GST on Swiggy and Zomato payouts, explained

The tax lines are the most confusing part of a Swiggy or Zomato settlement, and the easiest to get wrong in your own books. Here is what each one is. Tax rules change, so the rates below are as checked in September 2026 — confirm the treatment for your business with your chartered accountant.

GST on the food: collected, then deducted

Since January 2022, food delivery platforms pay the 5% GST on restaurant orders themselves, under section 9(5) of the CGST Act. That is why a Swiggy breakup shows GST Collected near the top — the 5% added to the customer's bill — and the same amount taken back as GST Deduction under taxes. The two should match. You do not pay this GST again on your delivery orders, but you should record it correctly so your returns agree with the platform's.

GST on the platform's fees

Commission and the platform's other fees are services supplied to you, and carry 18% GST — the line Swiggy calls GST on Service Fee @18%. For most restaurants on the 5% rate without input tax credit, this GST is a cost rather than something to claim back, which is why it belongs in any calculation of what the platform really takes.

TCS: tax collected at source

Under section 52 of the CGST Act, e-commerce operators collect TCS on supplies made through them and deposit it against the supplier's GSTIN. The rate was reduced from 1% to 0.5% from 10 July 2024. On many restaurant delivery orders the TCS line is zero, because the platform pays the GST on those orders itself. Where TCS is collected, it appears on the GST portal and can be claimed.

TDS under section 194-O

E-commerce operators also deduct income tax at source under section 194-O of the Income Tax Act. The rate was reduced from 1% to 0.1% from 1 October 2024. It is not a cost: it is tax paid on your behalf, visible in your Form 26AS and claimable against your income tax. Check that the TDS deducted matches what appears in 26AS each quarter.

Reconciling the taxes

• GST Collected and GST Deduction should match for the period.
• GST on the platform's fees should be 18% of those fees.
• TDS should be about 0.1% of the value it was deducted on, and agree with Form 26AS.
• TCS, where present, should agree with the GST portal.

This is a general guide, not tax advice. Rates and rules change; confirm the treatment for your business with your chartered accountant.