Nasscom seeks deferral of new GST rules for e-commerce deliveries

Nasscom has requested the Indian Ministry of Finance to postpone the enforcement of new GST rules for e-commerce delivery services, citing insufficient time for industry compliance. While the regulations were notified on October 27, they are currently set to take effect on November 1, necessitating rapid updates to billing, accounting, and ERP infrastructure across the logistics sector.

The new tax framework reduces the GST rate on delivery services from 18% to 5% but eliminates the eligibility for input tax credit (ITC). This shift requires platforms—which are liable for tax on deliveries performed by unregistered partners under Section 9(5) of the CGST Act—to overhaul their internal tax calculation processes. The revised scope of the law now explicitly covers delivery services regardless of distance, excluding only postal and courier services.

Industry participants argue that the transition period is inadequate for the scale of systemic changes required. While the government maintains the tax reduction is a clarification of existing policy rather than a new tax imposition, the logistical burden on e-commerce operators remains high. The Ministry of Finance has yet to issue a formal response to the deferral request.