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GST Council recommends flat 5% GST without credit on e-commerce delivery, plus e-way bill rationalisation
Our read
The flat 5% GST without credit on e-commerce delivery is most likely to be notified close to the recommendation, shifting small costs onto platforms, logistics partners and low-value orders.
For operators
If this is notified, delivery charges on e-commerce orders will carry a flat 5% GST with no input tax credit however you arrange the delivery, so model it as a hard cost and decide now whether to pass it on or absorb it in omni-channel order economics.
Watch
Publication of the formal notification or circular fixing the effective date for the 5% delivery rate
The report,
GST Council's change ends tax differences that depended on whether platforms or sellers arranged delivery, so the rate is the same however it is routed. It also recommended curbing in-transit interception of goods vehicles and bringing metro rail under transport document rules.
- Recommended GST on e-commerce delivery, no credit
- 5 per cent
What it means for online and offline
Because the recommended 5% GST without credit applies however delivery is arranged, in-house fleets, third-party logistics and store-fulfilment models would be taxed alike, so test delivery-related deal valuations against a no-credit tax cost while the rules are still pending.