TDS (194-O) and TCS on Swiggy and Zomato payouts: a 2026 guide for restaurants

By Raghav R · 15 October 2026

TDS and TCS look like deductions on your aggregator payout, but they are tax you have already paid. Unclaimed, they are money lost. Here are the rates as of October 2026, how to claim each credit, and the 2022 rule that moved GST on aggregator food orders to the platforms.

Quick reference

Item	Current position	Since
Income-tax TDS by e-commerce operator	0.1% of gross amount	1 October 2024 (was 1%)
Where it sits in the law	Section 393(1), Table serial 8(v), Income-tax Act, 2025 (was section 194-O, Income-tax Act, 1961)	1 April 2026
TDS if your PAN isn't with the platform	Up to 5%	Section 397(2) (was 206AA)
GST TCS by e-commerce operator (section 52)	0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST)	10 July 2024 (was 1%)
GST on restaurant food sold via aggregators	Paid by the platform under section 9(5); no TCS on these supplies	1 January 2022

Part 1: Income-tax TDS on aggregator payouts

What it is

An e-commerce operator must deduct income tax on the gross amount of sales it facilitates, at credit or payment, whichever is earlier (Section 194-O, Income Tax Department).

The rate, and how it changed

1% until 30 September 2024. 0.1% from 1 October 2024. The Finance (No. 2) Act, 2024 made the cut (Economic Times; Section 194-O).
From 1 April 2026, new section number, same rate. The Income-tax Act, 2025 replaced the 1961 Act. The e-commerce TDS now sits in section 393(1), Table serial 8(v): "0.1% of gross amount of such sale or services or both" (Section 393, Income Tax Department). All old TDS sections are now consolidated into sections 392 and 393 (Income Tax e-filing FAQ). "194-O" on older certificates is the same tax. We found no later change to the 0.1% rate.

Exemption for small individual sellers

No TDS is deducted where the seller is an individual or HUF, gross sales through the platform in the year don't exceed ₹5 lakh, and the seller has given the platform their PAN or Aadhaar (Section 393(4), Table serial 11). Companies, LLPs and firms don't qualify.

No PAN, higher TDS

If you haven't given the platform your PAN, TDS can be deducted at up to 5% instead of 0.1% (FAQs on section 397(2), Income Tax Department). Check that your PAN on each platform matches your tax records.

What "gross amount" means

CBDT Circular 20/2023 clarifies (CBDT Circular 20/2023, via TaxGuru):

GST: when TDS is deducted at the time of credit and the GST component is shown separately, TDS is on the amount excluding GST.
Discounts you fund reduce the price, so TDS is on the reduced amount.
Discounts the platform funds don't reduce the gross amount, so TDS is on the full price.

Zomato's terms say it applies TDS on "Gross Sales (less applicable taxes charged by the Restaurant)" (Zomato terms for restaurant partners). Quick check (sample figures): net order value ₹94,000 × 0.1% = ₹94 of TDS. Fifty-two such weeks is about ₹4,900 a year to claim. Illustrative only.

How to claim the TDS credit

Collect the TDS certificate. Form 16A is now Form 131, issued quarterly from TRACES. Due dates are 15 August, 15 November, 15 February and 15 June for the four quarters (Form 131 FAQ, Income Tax Department).
Match it to your annual tax statement. Form 26AS covers years up to FY 2025-26; from tax year 2026-27 it is Form 168 (Income Tax Department; Form 168 FAQ). Check each platform's TDS appears against your PAN.
Fix mismatches fast. Use AIS feedback for wrong entries (Form 168 FAQ); raise under-reporting with the platform. Zomato asks partners to flag discrepancies within 15 days of receiving the certificate, and says it won't entertain discrepancies after 31 July of the year following the financial year (Zomato terms). More on raising these in how to dispute Zomato deductions.
Claim it in your income-tax return against your tax liability for the year.

Part 2: GST TCS (section 52)

What it is and the current rate

Section 52 of the CGST Act makes e-commerce operators collect tax on the net value of taxable supplies made through them, excluding section 9(5) services (CBIC, section 52). The rate is 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST) from 10 July 2024, down from 1% (GSTN advisory). The cut came by Notification 15/2024-Central Tax, not a Finance Act.

Why your food orders usually show zero TCS

Since 1 January 2022, the platform itself pays GST on restaurant services supplied through it, under section 9(5). CBIC's Circular 167 says that, as a result, platforms "will no longer be required to collect TCS and file GSTR 8 in respect of restaurant services" on which they pay tax under section 9(5) (CBIC Circular 167/23/2021-GST).

TCS still applies to supplies that are not under section 9(5). For example:

items other than restaurant service sold through the app (Zomato's terms distinguish "Restaurant Service" from "Supply of Food and Beverages Items" other than restaurant service, and collect TCS on the latter) (Zomato terms);
restaurants located in specified premises (qualifying hotels), which are excluded from section 9(5) and charge GST themselves (TaxGuru on Tables 14 and 15).

How to claim the TCS credit

The platform reports TCS in its monthly GSTR-8.
On the GST portal, go to Services > Returns > TDS and TCS credit received (often called GSTR-2X). Accept or reject each auto-populated entry, then file the statement (GST Learn FAQ on TDS/TCS credit received).
Accepted amounts reach your electronic cash ledger only after you file; there is no due date or late fee. Use the balance for any GST liability or claim a refund (GST Learn; section 52(7), CBIC).
Rejected entries go back to the platform's GSTR-8 for amendment (GST Learn).

Part 3: The section 9(5) rule and what it means for you

From 1 January 2022, GST on restaurant service supplied through an e-commerce operator is paid by the operator, at 5%, in cash, with no input tax credit. This applies whether or not the restaurant is registered (CBIC Circular 167; ClearTax). The rule covers restaurant service "other than the services supplied by restaurant, eating joints etc. located at specified premises" (TaxGuru on Tables 14 and 15).

For a restaurant:

The platform issues the customer invoice for these orders, not you (CBIC Circular 167).
You don't pay GST on these sales, but you still report them. Since the January 2024 tax period, suppliers report them in GSTR-1 Table 14(b), net of credit and debit notes, and the values flow to GSTR-3B Table 3.1.1(ii) (TaxGuru on Tables 14 and 15; ClearTax). Don't include them in Table 3.1(a).
They count toward your aggregate turnover for thresholds and other purposes (CBIC Circular 167).
Input tax credit is still restricted. Restaurants outside specified premises pay 5% without credit. Since 1 April 2025, "specified premises" depends on whether the hotel actually charged over ₹7,500 per room per day in the previous year, or filed a declaration (CBIC FAQ on specified premises). A stand-alone restaurant cannot declare itself specified premises, per the GST Council's September 2025 recommendation (GST Council).
Mixed orders need separate bills. CBIC advised the platform to raise a separate bill where restaurant service and other supplies are in the same order (CBIC Circular 167).

What's coming

The GST Council's 57th meeting (8 October 2026) recommended limited input tax credit "in the same line of business" for restaurant services, amending section 9(5) to fix platform liability "irrespective of the business models", 5% GST on certain platform delivery services, and automatic refunds of excess cash-ledger balances. These are recommendations only until notified (PIB, 8 October 2026). We'll update this post when they are notified.

FAQ

Is TDS on my Swiggy/Zomato payout an extra cost? No. It is advance income tax; match it to Form 131 and Form 168 (26AS for earlier years) and claim it.

Why is there no TCS on most of my food orders? Because the platform pays GST on restaurant service under section 9(5), and CBIC has clarified that it doesn't collect TCS on those supplies (CBIC Circular 167). TCS appears only on supplies outside section 9(5).

My TDS in Form 168/26AS is lower than what the platform deducted. What now? Compare quarter by quarter with the platform's certificates and raise gaps promptly; some platforms set short windows (Zomato terms).

Never miss a credit

OnPlusOne is an early-stage Bengaluru startup building an AI agent that reconciles POS, Swiggy, Zomato, UPI, card, cash and bank every day, tracks TDS and TCS per platform, flags gaps, and prepares Tally vouchers for your accountant. It is a working prototype, piloting in Bengaluru. Try the live demo, or see how restaurant reconciliation works end to end.

This article is general information as of 15 October 2026, not tax advice. Rates and forms change; confirm with your CA before filing.