Notification No. 06/2026-Central Tax (Rate) and Notification No. 09/2026-Central Tax (Rate), both dated 27 October 2026, put the GST Council’s delivery-service recommendations into effect from 1 November 2026.
When does the 5% rate apply?
The amended rate entry under Heading 9968 covers delivery services, other than the preceding postal/courier-type entries, in either of these situations:
- The service is supplied through an e-commerce operator and the delivery provider is not liable for registration under Section 22(1) of the CGST Act.
- The delivery relates to goods supplied through an e-commerce operator. The official FAQ confirms 5% without ITC for delivery of goods supplied or ordered through an ECO.
The Central Tax rate is 2.5%; with the corresponding State or Union Territory tax, the combined domestic rate is 5%. For an inter-State supply, the matching Integrated Tax notification prescribes 5%.
Who pays the GST?
| Delivery provider’s position | Person liable | Rate and credit |
|---|---|---|
| Not liable to register under Section 22(1), and supplies the delivery service through an ECO | The e-commerce operator pays under Section 9(5) | 5%, without ITC |
| Liable to register under Section 22(1) | The delivery service provider pays under the normal provisions | 5%, without ITC for the notified delivery service |
The notification deliberately uses the test “liable for registration under Section 22(1)”. It should not be replaced with a single assumed turnover number: the registration analysis depends on the supplier’s facts and the applicable statutory provisions.
What remains outside this rule?
Postal and courier services are not brought under the new Section 9(5) delivery entry. The special 5% rate entry also does not convert every transport or logistics service into e-commerce delivery. Businesses should distinguish delivery services from courier services, postal services and goods transport agency services using the contract, operating model and invoice—not only the app or website through which an order was placed.
Who needs to act?
E-commerce marketplaces, food and quick-commerce platforms, delivery aggregators, registered logistics partners, merchants that separately charge delivery, and finance teams that account for platform collections should review the change. It matters even where the customer-facing price does not change, because the tax engine, invoice, cash payment and ITC treatment can change.
Practical steps now
- Map each delivery flow. Record who contracts with the customer, who supplies the delivery, whether the goods are supplied through an ECO, and whether the provider is liable to register.
- Set the correct tax payer. Configure Section 9(5) liability for eligible delivery partners who are not liable to register; do not shift liability from a registered provider merely because an ECO is involved.
- Update rates from 1 November. Apply 2.5% CGST plus the matching State/UT tax, or 5% IGST, only to the notified delivery service.
- Block and reverse attributable ITC. The 5% entry is conditional on credit of tax on goods and services used in supplying the delivery service not being taken. Review common-credit reversals and cost allocations.
- Separate excluded services. Do not label courier, postal or GTA services as ordinary delivery merely to use the 5% entry.
- Reconcile invoices and platform reports. Ensure order data, delivery fees, Section 9(5) tax, cash-ledger payment and provider invoices agree for the first November return period.
Reviewed on 2 November 2026. This note explains the notified delivery-service rules and does not replace a contract-specific classification or registration analysis.