How online food platforms really cut your price
Swiggy and Zomato usually take 18% to 28% commission on the food value. On top of that they charge 18% GST on the commission. Restaurants under the 5% GST rate can't claim that GST back, so a 22% commission really costs you about 26%. Add payment gateway charges and any discount you fund, and many kitchens give up 30% or more.
Amazon charges no referral fee on items priced up to ₹1,000 in most grocery categories since March 2026. Closing fees, shipping (weight handling) fees and 18% GST on those fees still apply, so a cheap, heavy pack can still lose money.
Retail through a distributor usually means giving the shop 15% to 30% of the MRP and the distributor another 5% to 10%. Your price to the distributor is what is left after GST.
What is the GST rate on packaged food in 2026?
Since 22 September 2025, most packed and branded foods, including namkeen, biscuits, chocolate, ghee, butter and spices, are at 5%. Some items, like fresh paneer and bread, are at 0%. Check the rate for your exact HSN code.
Is MRP inclusive of GST?
Yes. MRP must include all taxes. If your MRP is ₹105 and GST is 5%, ₹5 is GST and ₹100 is your price before tax.
How much commission does Zomato charge restaurants?
Usually between 18% and 28% of the order value, depending on city, plan and the services you take, plus 18% GST on the commission. Your contract and payout statement show your actual rate.
How do I price a homemade food product?
Add up ingredients, packaging, gas and electricity, labour and wastage for one batch, then divide by the packs it makes. Then add the channel's cut and GST on top, and the profit you want. This calculator does each step.