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Updated Oct 10, 2026 · 20:15
Business India News Updated Oct 10, 2026

CBIC Says No New GST on Delivery Services, Rate Cut to 5%

The Central Board of Indirect Taxes and Customs has rejected social media claims of a fresh GST on delivery services, calling them factually incorrect. CBIC said delivery services were earlier taxed at 18 per cent and the rate has now been reduced to 5 per cent as recommended in the 57th GST Council meeting. It added that all delivery services through e-commerce platforms are now taxed uniformly at 5 per cent, so there is a reduction in tax rather than a new imposition.

Claim of new GST on delivery services wrong: CBIC

New Delhi, Oct 10

The Central Board of Indirect Taxes and Customs on Saturday said that social media claims of a fresh GST imposition on delivery services are wrong and factually incorrect.

Replying to a post by the X handle @IndianGems_, CBIC said delivery services, for example those provided by food apps, were earlier taxed at 18 per cent.

The tax on these delivery services has now been reduced to 5 per cent as recommended in 57th GST Council meeting, it said.

The CBIC further noted that all delivery services provided through e-commerce platforms are now taxed uniformly at 5 per cent.

So there is no new imposition of tax. Rather, there is a reduction in tax, it added.

You are requested to not spread incorrect news, CBIC told @IndianGems_.

Earlier in the month, the government said GST 2.0 reforms come as registered taxpayers increased from around 60 lakh in 2017 to 1.70 crore till September 2026.

As of September 30, GST System had cumulatively processed 3,053 crore invoice uploads and 833.82 crore e-way bills.

Gross GST collections reached Rs 12.46 lakh crore during April-September 2026, up 11.6 per cent year-on-year.

Reforms provide simplified registration mechanism for small taxpayers making supply through e-commerce platforms, according to an official factsheet.

No show-cause notices will be issued if tax amount involved is less than Rs 10,000, it added.

Pending notices on date of provision and appeals involving amounts below Rs 10,000 will be decided based on Rs 10,000 minimum threshold as if it were applicable when notice was issued.

These recommendations build on GST's success and mark another step in its continued improvement. Together these measures would further promote ease of doing business and contribute to more efficient and taxpayer-friendly GST framework, factsheet added.

— IANS

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