The Central Government has amended the GST provisions governing delivery services supplied through e-commerce operators (ECOs). Notification No. 09/2026-Central Tax (Rate), dated 27 October 2026, revises the scope of services for which the e-commerce operator is responsible for paying GST under Section 9(5) of the Central Goods and Services Tax Act, 2017, with effect from 1 November 2026.

1. What Has Changed Under the New GST Notification?

The amendment substitutes clause (v) of Notification No. 17/2017-Central Tax (Rate), dated 28 June 2017.

Under the revised provision, delivery services supplied through an e-commerce operator, other than postal and courier services, fall under the specified category for GST payment by the ECO, except where the person supplying the delivery service through the ECO is liable for registration under Section 22(1) of the CGST Act, 2017.

The change clarifies responsibility for paying GST between the platform and the underlying delivery service provider.

2. Who Is Responsible for Paying GST?

The applicable treatment depends on whether the delivery service provider is liable to register under Section 22(1) of the CGST Act, 2017.

• Delivery service provider not liable for registration: The e-commerce operator is responsible for paying GST under Section 9(5).

• Delivery service provider liable for registration: The service provider is responsible for paying GST under the applicable provisions.

The exclusion for postal and courier services remains part of the revised clause. Businesses should therefore distinguish ordinary delivery services from services falling within the postal and courier categories.

3. Applicable GST Rate: 5% Without Input Tax Credit

Notification No. 06/2026-Central Tax (Rate), dated 27 October 2026, prescribes a GST rate of 5% without input tax credit (ITC) for the specified delivery services.

This means that the applicable supplier or e-commerce operator, as the case may be, must account for GST at the prescribed rate, without claiming ITC where the rate entry restricts such credit.

The same rate treatment should be considered when reviewing pricing arrangements, delivery charges and GST accounting between platforms and service providers.

4. Effective Date and Compliance Requirements

The revised provisions take effect from 1 November 2026.

E-commerce operators and delivery businesses should take the following steps before implementation:

1. Update the platform's GST configuration to identify transactions covered by Section 9(5).

2. Obtain and maintain appropriate registration-status information for delivery service providers.

3. Configure invoicing and tax-payment workflows to identify the party responsible for GST.

4. Apply the prescribed 5% rate without ITC wherever the relevant rate entry applies.

5. Review contracts and settlement statements to ensure that GST responsibilities are clearly allocated.

Conclusion

The amendment provides greater clarity on GST responsibility for delivery services supplied through e-commerce platforms. From 1 November 2026, ECOs and delivery service providers should review their registration status, tax configurations and accounting processes to ensure compliance with the revised provisions.

For expert guidance on this topic, contact your tax professional today.