GST Council Clears 5% Tax on E-commerce Delivery Services Effective 1 November 2026

Key facts

• The GST Council, at its 57th meeting on 8 October 2026, recommended a 5% GST rate without input tax credit (ITC) on delivery services for goods supplied through electronic commerce operators, reduced from the earlier 18%.
• The Central Government issued Notification No. 09/2026-Central Tax (Rate) on 27 October, with the revised treatment effective from 1 November 2026.
• The 5% rate excludes postal and courier services, and under Sections 9(5) and 22(1) of the Central Goods and Services Tax Act, 2017, the electronic commerce operator must pay the GST when the delivery service provider is not liable to register.
• On 28 October, the National Association of Software and Service Companies (Nasscom) asked the Finance Ministry to defer implementation until 1 January 2027, citing time needed to update technology, billing, accounting and tax systems, and sought consultation with e-commerce operators and logistics providers.
• The GST Council includes the Union finance minister and state counterparts, and recommends tax rates, rules and regulations.