GST Update: 10-Minute Delivery to Become Costlier from September 22

The Central Board of Indirect Taxes and Customs (CBIC) has issued fresh FAQs, clarifying that local delivery services—whether provided directly by the supplier or through an e-commerce operator (ECO)—will now attract 18% GST.

This change means that customers could face slightly higher delivery charges, while e-commerce companies and delivery partners will see a rise in compliance responsibilities.

Key Clarifications by CBIC:

• Direct Delivery (Registered Supplier): 18% GST payable by the supplier.

• Delivery via ECO (Unregistered Partner): 18% GST payable by the e-commerce operator under Section 9(5).

• Delivery via ECO (Registered Partner): 18% GST payable by the delivery partner, not the ECO.

Why This Matters:

• For Customers: Delivery charges may go up.

• For E-commerce Operators: Added compliance burden, especially when dealing with unregistered delivery partners.

• For Government: Better tax uniformity and reduced revenue leakage in the delivery sector.

From September 22, these new rules will officially come into effect, impacting quick-commerce platforms and last-mile delivery services across India.