# Uniform 5 Percent GST Set for E-Commerce Deliveries as Input Tax Credit Withdrawn

> The GST Council has cleared confusion by fixing a uniform 5 percent GST on e-commerce deliveries regardless of vehicle type. However, companies will no longer receive input tax credit on these services.

**Type:** article · **Category:** Business · **Published:** 2026-10-08 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/e-commerce-dilivari-para-eka-samana-5-phisadi-gst-taya-knpaniyon-ko-inaputa-taiksa-kredita-nahin-milega-44927 · **Language:** English
**Tags:** GST Council, E-Commerce, Delivery Services, Tax Rules, Input Tax Credit, Online Shopping

Tax ambiguity surrounding logistics for online shopping platforms has been resolved following the 57th GST Council meeting held in New Delhi on October 8. The council announced that delivery services provided through e-commerce channels will now face a flat 5 percent Goods and Services Tax regardless of the transportation mode used. Prior to this ruling, e-commerce operators faced considerable uncertainty regarding applicable service taxes. Companies previously operated under the assumption that deploying electric vehicles for parcel transit attracted lower service taxes, whereas deliveries handled by conventional petrol or diesel vehicles were taxed at higher rates. The council has eliminated this distinction by mandating a uniform 5 percent rate across all transit modes. However, businesses will not be permitted to claim input tax credit against this levy.

## Specific Criteria and Distinction From Courier Postal Channels
The council emphasized that this uniform tax regime applies strictly to delivery services distinct from regular postal and courier operations. The framework specifically targets fulfillment operations conducted through e-commerce networks falling under Section 9(5) of the Central GST Act. By delineating these boundaries, tax authorities have established a clear operational category for modern app-based delivery mechanisms while keeping standard courier and postal operations under their existing respective legal definitions.

## Relief From Registration Requirements for Delivery Personnel
In a crucial clarification regarding individual service providers, the council confirmed that the delivery personnel physically executing the transit are exempt from registration mandates. Under the ruling, individuals providing these delivery services are not required to obtain mandatory GST registration under Section 22(1) of the Central GST Act. Consequently, individual delivery agents bear no legal liability to pay GST on these services, shielding frontline workers from regulatory compliance and tax collection duties.

## What this means for you
Standardizing the tax rate on e-commerce deliveries provides operational clarity while shifting credit mechanisms for digital platforms.

- **For Online Shoppers:** The service tax component on platform deliveries is now standardized at 5 percent. Because platforms cannot claim input tax credit, delivery fee structures could adjust accordingly.
- **For Delivery Workers:** Individual agents delivering packages do not need to register under the CGST Act. This ensures gig and transit workers face no direct compliance or tax collection burden.
- **For Fleet Operations:** Electric vehicles and fossil-fuel vehicles are now taxed at the exact same 5 percent rate. Logistics providers no longer need split accounting based on fuel or vehicle type.
- **For Traditional Couriers:** This tax structure applies specifically to Section 9(5) e-commerce fulfilment services. Postal deliveries and traditional courier operations remain completely separate from this rule.

## Why this happened
E-commerce platforms faced ongoing ambiguity regarding applicable tax rates based on the fuel and propulsion types of delivery fleets. The council introduced standard guidelines to remove this operational confusion.

- **Confusion Over Fleet Propulsion:** Platforms previously assumed electric vehicle transit carried reduced service taxes compared to petrol or diesel deliveries. Introducing a uniform 5 percent rate across all transportation modes eliminated this differentiation.
- **Denial of Input Tax Credit:** While keeping the levy at 5 percent, authorities excluded input tax credit benefits for platforms. This simplifies tax structures while curtailing credit claims against low-rate delivery fulfillment.
- **Statutory Delineation:** The council clearly demarcated these services under Section 9(5) apart from postal and courier activities. This statutory clarity simultaneously exempted individual delivery workers from registration obligations.

## Questions & Answers

### 1. What is the new GST rate on e-commerce deliveries?
E-commerce delivery services across all transportation modes will now attract a uniform 5 percent GST.

### 2. Do electric vehicles face a different tax rate than petrol or diesel vehicles?
No, the council clarified that the 5 percent GST applies uniformly regardless of the transit mode or vehicle type.

### 3. Can companies claim input tax credit on this 5 percent delivery tax?
No, businesses will not receive input tax credit benefits for these delivery services.

### 4. Are individual delivery workers required to register for GST?
No, delivery personnel are not required to obtain GST registration under Section 22(1) of the CGST Act.

### 5. Which services fall under this new tax rule?
The rule applies to e-commerce delivery services covered under Section 9(5) of the CGST Act that are distinct from courier and postal services.

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