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GST Council Proposes 5 Percent Levy on E-Commerce Deliveries Without ITC
M
Moneycontrol•08-10-2026, 19:10
GST Council Proposes 5 Percent Levy on E-Commerce Deliveries Without ITC
- •The GST Council has proposed a 5 percent GST rate without input tax credit on certain delivery services supplied through electronic commerce operators.
- •The proposal covers delivery services excluding courier and postal services where the provider is not liable for registration under Section 22(1) of the CGST Act.
- •A separate 5 percent rate has been suggested for delivery services relating to goods ordered or supplied via an e-commerce platform.
- •Existing GST exemptions for the transportation of goods to unregistered persons by goods transport agencies will be removed if ordered through an ECO.
- •Government sources clarified that a 5 percent GST will now apply to the delivery of goods through all modes of transport.
Key Questions Answered
The GST Council has proposed a 5% GST rate without input tax credit for certain delivery services supplied through electronic commerce operators under Section 9(5) of the CGST Act.
The recommendations seek to remove the existing GST exemption for the transportation of goods to unregistered persons by goods transport agencies when those goods have been supplied or ordered through an e-commerce operator.
No, the proposed 5% GST rate applies to delivery services other than courier and postal services supplied through an electronic commerce operator.
