Nasscom Seeks Delay in New GST Rules for Ecommerce Deliveries Until January 2027

Nasscom has asked the Finance Ministry to postpone the implementation of revised GST rules for ecommerce delivery services until January 1, 2027. The industry body says businesses need more time to update their technology, accounting and tax compliance systems before the new framework takes effect.

In a representation submitted to the ministry on October 28, Nasscom called for a longer transition period and consultations with ecommerce platforms, logistics providers and other businesses that will be affected by the changes.

The request comes just days before the new rules are scheduled to take effect. The government notified the changes on October 27, with implementation set for November 1, leaving companies with very little time to prepare.

## Why Nasscom Wants the GST Deadline Extended

The revised rules follow recommendations made at the 57th GST Council meeting on October 8. They introduce a 5% GST rate without input tax credit (ITC) for specified delivery services and expand the scope of services for which ecommerce operators are responsible for paying tax.

Nasscom believes the short gap between notification and implementation will make it difficult for businesses to comply smoothly.

According to the industry body, ecommerce companies operate through interconnected technology and accounting systems that process large volumes of transactions. Adapting these systems to the new tax framework will require changes across several areas, including:

- Enterprise resource planning (ERP) configurations
- Invoicing and billing systems
- GST calculations
- Input tax credit treatment
- Tax reporting and compliance processes

Companies will also need time to review the notified provisions, understand how they apply to different business models, make the required changes and test their systems before implementation.

Based on feedback from the industry, Nasscom has proposed January 1, 2027, as the revised implementation date.

## What Changes Under the New GST Framework?

One of the key changes is the introduction of a 5% GST rate without ITC for specified delivery services. This replaces the earlier 18% GST treatment applicable to certain services.

However, the lower tax rate comes with an important condition: businesses covered by the new framework will not be able to claim input tax credit on eligible GST paid for their business inputs.

ITC allows businesses to offset the tax paid on purchases and operating expenses against their GST liability. Removing this benefit could affect the overall tax cost of providing delivery services.

As a result, a reduction in the headline GST rate does not automatically mean that delivery costs will fall by the same proportion. The actual financial impact will depend on how each company operates and the input tax credits it currently claims.

The revised wording also broadens the description of covered services. The earlier reference to “local delivery” has been replaced with “delivery services, other than postal and courier services”.

This could bring a wider range of delivery arrangements within the scope of the revised provisions.

## Ecommerce and Logistics Companies Face System-Level Changes

The new framework could require significant operational adjustments across the ecommerce and logistics ecosystem.

Online marketplaces, delivery partners and logistics providers will need to review their existing tax arrangements and determine how the revised provisions affect their respective business models.

For companies handling large numbers of orders and delivery transactions, even relatively small changes to tax calculations or invoicing processes can require substantial technology updates.

Nasscom has therefore urged the government to engage with ecommerce operators, logistics companies and other affected stakeholders before the rules are implemented.

The association believes such consultations would help clarify the requirements, address operational concerns and give businesses a better understanding of their compliance responsibilities.

## What Happens Next?

The revised GST rules are scheduled to come into force on November 1, 2026. Nasscom wants the government to move the deadline to January 1, 2027, giving businesses roughly two additional months to prepare.

The Finance Ministry's decision will be important for ecommerce platforms and logistics companies that need to make changes across their technology, accounting and tax systems.

While the revised framework is intended to bring greater consistency to the GST treatment of ecommerce delivery services, its implementation will require coordination across several parts of the industry.

For now, businesses are waiting to see whether the government will accept Nasscom's request and provide the additional transition period.