GST on e-commerce deliveries cut to 5% ahead of Diwali, not a new levy
The Central Board of Indirect Taxes and Customs clarified that the GST on delivery services through e-commerce platforms has been reduced from 18% to 5%, not introduced as a new tax.
The Central Board of Indirect Taxes and Customs issued a statement on social media to correct misinformation about a supposed new tax on e-commerce deliveries. According to the board, the 57th GST Council meeting approved a reduction of the GST rate on delivery services from 18% to a uniform 5% across all e-commerce platforms, including food-delivery apps. The Income Tax Department echoed this view, calling the claim of a new levy factually incorrect.
The clarification came as rumors spread that consumers would face higher costs ahead of the Diwali shopping season. The board emphasized that the adjustment is a rate cut, not an additional tax imposition. This uniform 5% rate now applies to all delivery services offered through online marketplaces.
Why it matters
Consumers need to know the GST on online deliveries has been lowered, not increased, affecting holiday shopping costs.
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