The Central Board of Indirect Taxes and Customs (CBIC) has issued fresh FAQs, clarifying that local delivery services—whether provided directly by the supplier or through an e-commerce operator (ECO)—will now attract 18% GST.
This change means that customers could face slightly higher delivery charges, while e-commerce companies and delivery partners will see a rise in compliance responsibilities.
Direct Delivery (Registered Supplier): 18% GST payable by the supplier.
Delivery via ECO (Unregistered Partner): 18% GST payable by the e-commerce operator under Section 9(5).
Delivery via ECO (Registered Partner): 18% GST payable by the delivery partner, not the ECO.
For Customers: Delivery charges may go up.
For E-commerce Operators: Added compliance burden, especially when dealing with unregistered delivery partners.
For Government: Better tax uniformity and reduced revenue leakage in the delivery sector.
From September 22, these new rules will officially come into effect, impacting quick-commerce platforms and last-mile delivery services across India.
