Nasscom asks for 1 January start to 5% GST on e-commerce delivery

Nasscom said on 30 October that it has asked for more time on the new GST treatment of delivery services booked through e-commerce platforms. The body wants the start moved to 1 January 2027, from 1 November¹.

It said it wrote to the Finance Ministry on 28 October. The change follows a recommendation of the 57th GST Council and a notification issued on 27 October¹.

What the 5% rate does

The Council recommended a 5% rate with no input tax credit for delivery services facilitated through e-commerce operators (ECOs), the platforms that host sellers and handle checkout^1, 4.

The Economic Times, citing a Press Information Bureau clarification, reported in October that the rate had been lowered from 18% to 5%. It said the change was part of the 57th Council's recommendations and was not a new tax².

That difference matters for business buyers. A registered firm used to claim credit on an 18% delivery charge. It cannot do so now, so the 5% stays in its cost base instead of being netted off against output tax^1, 2. A shopper who pays a delivery fee at the higher rate will see the rate on the bill fall².

Nasscom said the revised framework requires changes to ERP configurations, invoicing, tax calculations, input tax credit treatment and GST compliance processes, followed by testing¹.

Why industry wants more time

Nasscom cited the volume of transactions that e-commerce businesses process through linked technology and accounting systems, and the short time available to make the changes¹.

"Nasscom has submitted a representation to the Ministry of Finance on 28 October 2026, seeking an adequate transition period," the body said in its blog, according to BusinessLine¹. It also asked the government to hold an industry consultation with e-commerce operators, logistics providers and other affected stakeholders¹.

As of 30 October the deferment is a request, not a notified change. The operative date on record is still 1 November, set by the 27 October notification¹.

The rest of the 1 November package

Nasscom's letter deals only with the delivery services change¹. Several other GST changes take effect on the same date.

Small sellers who supply only through e-commerce platforms can use a platform warehouse in another state as their principal place of business, under a new Rule 14B⁴. The option is limited to sellers that pass on input tax credit of not more than Rs 2.5 lakh a month. They must already hold a registration in at least one state⁴. The government has said the facility could help around 9.5 lakh small sellers³.

Refunds also change. The system will sanction refunds of excess balance in the electronic cash ledger without officer intervention. It will also release 90% of claims for zero-rated supplies and inverted duty structure on a provisional basis³. The window to issue an acknowledgement or deficiency memo falls to 10 days from 15³. A minimum threshold of Rs 10,000 applies to show cause notices³.

Separately, Finance Act, 2026 provisions on post-sale discounts, 90% provisional refunds for inverted duty structure and the removal of the Rs 1,000 minimum refund threshold for exports take effect on 1 November⁵. Changes that need an amendment to the GST law are slated for 1 April 2027³.

What to check before Sunday

• Read delivery and fulfilment contracts for whether charges are quoted GST-inclusive or GST-extra¹.
• Re-price lanes and rate cards that assumed input credit on delivery at the old rate².
• Ask your marketplace account manager and third-party logistics provider, in writing, who absorbs the 5% on seller payouts and delivery fees¹.
• Diarise 1 November and watch for a CBIC clarification or a Finance Ministry order on deferment¹.