Nasscom has filed a representation with the Ministry of Finance seeking a deferral of the implementation of the new GST rules for delivery services on e-commerce platforms until January 1, 2027, Business Standard reported on October 28. The rules were notified on October 27 and are set to take effect from November 1, leaving companies very little time to change their billing and accounting procedures for deliveries.

The GST rate on these delivery services has been lowered from 18% to 5%, but the lower rate does not allow input tax credit (ITC). ITC allows a business to set off the GST paid on expenses such as fuel, vehicles and warehousing against the tax it collects. Maritime Gateway also highlighted how this trade-off will affect operators differently, depending on their business models, the ratio of registered to unregistered delivery partners, and the extent to which they use transport agencies.

The changes follow the 57th GST Council’s recommendations of October 8 and are being implemented through Notification No. 06/2026-Central Tax (Rate) and Notification No. 09/2026-Central Tax (Rate), both dated October 27, 2026.

What changes on November 1?

  • The entry for delivery services in the list of services on which e-commerce platforms pay GST has been rewritten.
  • The central GST rate has been reduced from 5% to 2.5%, bringing the total GST rate to 5% after adding the state’s share. This rate applies on the condition that ITC is not claimed.
  • Corresponding notifications under the Integrated GST and Union Territory GST laws make the changes applicable across the country from the same date.

The revised entry is broader than the previous one. Since September 22, 2025, it has read:

“services by way of local delivery except where the person supplying such services through electronic commerce operator is liable for registration under sub section (1) of section 22 of the Central Goods and Services Tax Act, 2017.”

From November 1, it will read:

“Delivery services, other than postal and courier services, except where the person supplying such services through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017.”

The revised entry is no longer limited to local deliveries. It covers deliveries supplied through a platform over any distance, except postal and courier services.

Who pays the tax?

Under Section 9(5) of the Central Goods and Services Tax (CGST) Act, the government can notify services for which an e-commerce operator must pay GST as if it were the supplier liable for the tax. This applies to delivery services where the delivery partner is not required to register under Section 22(1) of the Act. In practice, the platform pays GST on deliveries made by unregistered delivery partners.

If the delivery service provider is registered, the provider pays GST at 5%, while the platform collects tax at source on the transaction, A2Z Taxcorp explained. The changes affect food delivery and quick commerce apps, online marketplaces, and logistics firms that deliver orders.

Is this a tax cut?

The tax on the delivery charge itself is a cut. But, the social media posts claiming a “new” 5% GST on deliveries are claimed to be wrong as the Central Board of Indirect Taxes and Customs (CBIC) clarified on October 10, NewKerala reported. The government’s PIB Fact Check unit said that “the claim of a newly imposed tax is false.”

MediaNama could not find a statement from any platform on whether the changes will affect delivery fees charged to customers.

What does Nasscom want?

In its representation of October 28, Nasscom said:

While these changes aim to bring greater consistency to GST treatment, their implementation would require significant adjustments across the e-commerce and logistics ecosystem.

Nasscom said businesses would need to change their enterprise resource planning (ERP) configurations, invoicing systems, tax calculations, ITC treatment and compliance processes, among other things. These changes would require more time, Business Standard reported.

MediaNama has not seen the representation itself and could not find any public response from the Finance Ministry.

What is still not law?

The GST Council also recommended amending Section 9(5) of the CGST Act itself “to provide clarity regarding liability of the ECO to pay tax for the notified services, irrespective of the business models being followed by him.”

This would require Parliament to amend the CGST Act. MediaNama could not find any such amendment as of October 29, 2026.

The Council’s press release states that its recommendations “would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law.“

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