Zesday — Tax Treatment & Compliance Disclosure
Version: 3.0 · Effective date: 16 September 2026
This disclosure explains how GST and income tax apply to orders, fees and payouts on Zesday, which is operated by Qubrix Technode Private Limited (GSTIN 09AABCQ2600E1ZX). It is written for our restaurant partners and delivery partners so that every tax amount on an invoice or statement can be understood and checked. It forms part of the Restaurant Partner Agreement and the Delivery Partner Agreement.
The rates quoted here are the rates the platform applies today. If the law changes, we update the rates, this disclosure and the affected invoices from the date the change takes effect.
1. How an order is split for tax
Every order is recorded as separate parts, each with its own tax treatment:
- food and restaurant packaging or handling charges;
- Zesday's platform fee and delivery fee;
- Zesday's commission and any other fee charged to the restaurant;
- delivery-partner earnings and incentives;
- customer tips;
- discounts, and who funded them;
- cancellations, refunds and chargebacks.
The tax rates that apply to an order are fixed when it is placed, so a later change never rewrites a past invoice or statement.
2. Treatment of each part
| Part of the order | Who is liable | Treatment |
|---|---|---|
| Food ordered from an ordinary restaurant, including its packaging or handling charge | Zesday, as e-commerce operator | GST at 5% paid by Zesday under Section 9(5) of the CGST Act. The restaurant does not charge GST on these orders. |
| Food from a restaurant in "specified premises" (as defined under GST law) | The restaurant | The restaurant charges and pays GST on the food itself. The restaurant must tell us if this applies. |
| Platform fee and delivery fee charged to the customer | Zesday | Zesday's own services. GST at 18%, shown on the customer invoice. |
| Commission, advertising and other fees charged to a restaurant | Zesday | GST at 18% on a tax invoice to the restaurant, which can claim input tax credit. |
| Restaurant payouts | Zesday deducts income tax | TDS under section 393 of the Income-tax Act, 2025 — see section 3. |
| Delivery-partner earnings and incentives | Zesday deducts income tax where the law requires | See section 4. |
| Customer tips | — | Passed 100% to the delivery partner. Not part of Zesday's fees. |
| Discounts | The party that funds them | Shown on the invoice and statement with who funded them; tax is calculated on the discounted values shown. |
| Cancellations and refunds | The party that was charged | The affected parts are reversed, and a credit note is issued where the law requires. |
| GST TCS (Section 52, CGST Act) | Zesday | Does not apply to food supplied under Section 9(5). If a supply outside Section 9(5) is ever sold through Zesday, TCS at 0% is collected and shown on the statement. |
3. Income-tax deduction on restaurant payouts
3.1 Section 393 of the Income-tax Act, 2025 applies from 1 April 2026 and replaced section 194-O of the Income-tax Act, 1961, which applied to earlier periods.
3.2 We deduct 0% of the gross amount of a restaurant's sales through Zesday and deposit it against the restaurant's PAN.
3.3 No deduction is made for an individual or HUF whose gross sales through Zesday in the financial year do not exceed ₹5,00,000, if they have given us their PAN or Aadhaar.
3.4 Where PAN or Aadhaar has not been provided, the rate is 0%.
3.5 A restaurant holding a lower-deduction certificate should share it; we then apply the lower rate.
3.6 We file TDS returns and issue a TDS certificate for each quarter. The amount deducted is shown on every statement.
4. Delivery partners
4.1 Delivery partners are independent contractors. Where the Income-tax Act, 2025 requires tax to be deducted from their payouts, we deduct it at the rate the law sets, deposit it against their PAN, show it on their statement and issue a TDS certificate. A higher rate can apply if PAN is not provided. No deduction is made below the legal threshold.
4.2 Delivery partners whose turnover is below the GST registration threshold generally do not need to register for GST. A GST-registered delivery partner may charge GST to Zesday on a proper tax invoice.
5. Invoices and statements
- Customers receive a tax invoice for every order, showing each charge and the GST on it.
- Restaurants receive a tax invoice for commission and fees, and a statement for every payout
showing orders, commission, GST, TDS, any TCS, refunds, adjustments and the net amount paid.
- Delivery partners receive a statement showing trip earnings, incentives, tips, cash-on-delivery
set-off, any tax deducted and the net amount paid.
Every invoice shows the supplier, the recipient, GSTINs where applicable, place of supply, taxable value, tax rate and the tax split.
6. Records
We keep order, invoice, payout and tax records for the periods GST, income-tax and company law require. Corrections are made as new, logged entries so that the history of every amount can be traced.
7. Your responsibilities
Restaurants and delivery partners are responsible for their own registrations and returns, and for giving us correct PAN, GST and outlet details. Please check each statement and raise any disagreement through the Grievance Redressal Policy; we will review it against the order records and explain the outcome.
8. Official sources
which made e-commerce operators liable for GST on restaurant services from 1 January 2022.
on Section 9(5) restaurant services, invoicing, returns and TCS.
effective 10 July 2024.
in force from 1 April 2026.