Quick Summary
The Ministry of Finance has issued Notification No. 17/2025 - Central Tax (Rate) along with corresponding amendments under Integrated GST (IGST) and Union Territory GST (UTGST), providing clarity on the applicability of GST to local delivery services provided through electronic commerce operators (ECOs). The new provisions will come into effect from September 22, 2025.
Key Highlights of the Notification
Exemption for Local Delivery Services
- Local delivery services supplied through electronic commerce operators (ECOs) will generally remain exempt from GST.
- However, if the person supplying such services is liable for GST registration under Section 22(1) of the CGST Act, 2017, the exemption will not apply.
Amendments Across Tax Categories
- The same provision has been inserted in the Central GST (CGST), Integrated GST (IGST), and Union Territory GST (UTGST) frameworks for uniformity.
- This ensures consistent treatment of local delivery services across the country, including Union Territories.
Scope of Change
- The amendment has been introduced by inserting a new clause (v) in the earlier notifications.
- This clarifies that small service providers using ECOs for local delivery may not attract GST, unless they cross the prescribed turnover threshold requiring compulsory registration.
Effective Date
- The notification comes into force from September 22, 2025.
Industry Impact
This clarification is expected to benefit gig workers, hyperlocal delivery agents, and small service providers who operate through e-commerce platforms. It aims to reduce compliance burdens on smaller players while ensuring that larger service providers remain within the GST net.
Official copy of the notification has been attached
FAQ :
The notification clarifies the applicability of GST to local delivery services provided through e-commerce operators, effective from September 22, 2025.
Yes, local delivery services supplied through e-commerce operators will generally remain exempt from GST.
The new provisions will come into effect from September 22, 2025.
The exemption will not apply if the person supplying local delivery services through an e-commerce operator is liable for GST registration under Section 22(1) of the CGST Act, 2017, typically due to exceeding a turnover threshold.
This clarification is expected to benefit gig workers, hyperlocal delivery agents, and small service providers who operate through e-commerce platforms.
Yes, the same provision has been inserted in the Central GST (CGST), Integrated GST (IGST), and Union Territory GST (UTGST) frameworks for uniformity.
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