Not every e-commerce delivery in India is currently subject to a 5% GST rate. A 5% rate without input tax credit (ITC) appears in GST Council recommendations published by the Press Information Bureau (PIB) on 9 October 2026. The recommendation is not, by itself, proof that the rate is in force. PIB’s FAQ on rates effective from 22 September 2025 says local delivery services are taxable at 18%. For a specific transaction, check the applicable Government rate notification and its effective date.
Is GST on e-commerce delivery 5% or 18%?
The answer depends on the service category and whether the 5% recommendation has been implemented by a Government notification. The available official material describes two different positions:
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- 5% without ITC: a GST Council recommendation, reported by PIB on 9 October 2026, for specified delivery-service categories connected with e-commerce operators (ECOs). PIB describes this as a recommendation, not as a confirmed effective rate. PIB: Next-Gen GST Process Reforms.
- 18%: PIB’s FAQ posted 21 September 2025 says, “The services of local delivery are taxable at 18%.” It says the revised rates apply from 22 September 2025. PIB: GST Simplified FAQ.
These statements should not be collapsed into a blanket rule that all delivery through an app is taxed at 5% or 18%. The 2026 recommendation uses defined categories, while the 2025 FAQ addresses local delivery. The reviewed official material does not establish an implementing notification for the recommended 5% treatment. Confirm the current notification, scope and effective date before applying it.
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Delivery through an ECO by certain providers
One recommended category is delivery services other than courier or postal services, supplied through an ECO under section 9(5) of the CGST Act where the service provider is not required to register under section 22(1). The recommended rate is 5% without ITC.
Delivery for goods supplied or ordered through an ECO
The second category is delivery services for goods supplied or ordered through an ECO, also recommended at 5% without ITC. The wording does not establish that every local delivery job, or courier and postal services, is included. The final notification’s wording will determine the implemented scope. Both categories are set out in PIB’s 9 October 2026 reform summary.
Who pays GST on local delivery through an e-commerce platform?
PIB’s 2025 FAQ gives the following distinction for local delivery at 18%:
- Registered delivery provider: the provider pays GST on its supply.
- Unregistered provider supplying through an ECO: the ECO has the section 9(5) payment obligation described in the FAQ.
The platform’s involvement alone does not settle who is liable. Provider registration status and the applicable statutory category matter. See the PIB FAQ on revised rates and CBIC’s Sectoral FAQs: E-Commerce.
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How section 9(5) differs from section 52 TCS
These provisions do different jobs. Under section 9(5), an ECO is treated as liable to pay GST as the supplier for services that have been notified under that provision. CBIC says that for other taxable supplies, section 52 may require the ECO to collect tax at source (TCS) when it collects consideration. TCS is a collection-and-remittance mechanism; it is not the GST rate on the customer-facing supply and should not be described as a 5% delivery charge. CBIC explains the distinction in its e-commerce FAQs.
Is courier or postal delivery covered?
The 5% recommendation for delivery services supplied through an ECO expressly excludes courier or postal services in that category. The separate recommendation for delivery of goods supplied or ordered through an ECO does not, in the PIB summary alone, resolve every boundary involving courier or postal providers. Do not assume that either category covers all courier or postal delivery. The applicable notification must be checked for the final scope.
Is restaurant delivery through an app the same rule?
No. Restaurant service supplied through an ECO has a separate section 9(5) treatment that took effect on 1 January 2022. CBIC Circular No. 167/23/2021-GST says the ECO is liable to pay GST on those restaurant services, does not collect section 52 TCS on them, and must discharge that tax in cash without ITC. This is a distinct rule, not a change created by the 2026 delivery-service recommendation. CBIC Circular No. 167/23/2021-GST.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What sellers and operators should verify
- Identify the actual supply. Separate local delivery, other delivery services, courier or postal services, and restaurant service; the provisions are not interchangeable.
- Check the provider and transaction facts. For relevant section 9(5) treatment, establish whether the service is supplied through an ECO and whether the provider’s registration status fits the applicable category.
- Find the Government rate notification. The 5% figure is described in the 9 October 2026 PIB summary as a Council recommendation. Verify a notification that implements it, including its scope and effective date, before using 5% on invoices or in filings.
- Separate GST liability from TCS accounting. Determine whether the ECO is liable under section 9(5) or whether section 52 TCS applies to the relevant supply; one mechanism does not establish the other’s rate.
PIB’s FAQ on the 2025 rate changes says revised rates take effect through Government rate notifications. Its stated effective date for those changes was 22 September 2025; that date should not be treated as the effective date of the later 5% delivery recommendation. PIB FAQ: effective dates and rate notifications.
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