5% GST On E-Commerce Delivery Services Ahead Of Diwali? Here’s What The Government Says

The PIB Fact Check has flagged a viral social media claim alleging that the government has newly imposed a 5 per cent Goods and Services Tax (GST) on e-commerce delivery services, clarifying that the claim is false.

The claim, shared on social media, alleged that Finance Minister Nirmala Sitharaman had introduced a new 5 per cent GST on e-commerce delivery services shortly after stating that taxes had not been increased.

In its post on X, PIB Fact Check said, “The claim of a newly imposed tax is false.” It clarified that the GST rate on e-commerce delivery services had been rationalised from 18 per cent to 5 per cent following the recommendation of the 57th GST Council meeting.

What Did The Viral Claim Say?

The viral post alleged that the government had imposed a new 5 per cent GST on e-commerce delivery services. It presented the change as a fresh tax imposition by the Centre.

The claim also linked the alleged tax imposition to Finance Minister Nirmala Sitharaman’s remarks on taxes. However, PIB Fact Check flagged the claim as false and referred to the clarification issued by the Central Board of Indirect Taxes and Customs (CBIC).

What Did CBIC Say?

In its post on X, CBIC said delivery services, including those provided through food delivery apps, were earlier taxed at 18 per cent. The rate has now been reduced to 5 per cent following the recommendation of the 57th GST Council meeting.

CBIC also said delivery services provided through e-commerce platforms are now taxed uniformly at 5 per cent. It urged users not to circulate incorrect information about the change.

What Does This Mean For Consumers?

The revised rate shows a reduction in GST rather than the introduction of a new tax. While delivery services are not tax-free, and the final amount paid by consumers may also include delivery charges and other applicable fees.

The change in the GST rate alone does not establish how much a consumer’s final bill will decrease, as the total amount depends on the charges applicable to an order.

Consumers should refer to official government communications before sharing claims about changes in GST rates. PIB Fact Check has urged users to rely on official sources and avoid circulating misleading information.