Nasscom Urges Delay for New Ecommerce GST Rules

Industry Pushes for Deadline Extension

Ecommerce marketplaces and logistics providers are facing a tight deadline following the notification of revised Goods and Services Tax (GST) rules. The government announced the new regulations on October 27, with implementation scheduled for November 1. This leaves companies with only a few days to adjust their operations to the new tax regime.

Nasscom, an industry body representing these sectors, submitted a formal request to the finance ministry on October 28. The organization is seeking to defer the implementation of these rules until January 2027. Nasscom argued that the current timeline provides insufficient time for businesses to overhaul their technology, accounting, and compliance systems.

Operational Challenges and Tax Implications

The new norms, stemming from recommendations by the 57th GST Council on October 8, introduce a 5% GST rate for specified delivery services. This replaces the previous 18% rate but removes eligibility for input tax credit (ITC). Under this new structure, service providers cannot offset the GST paid on business inputs against their output tax liability.

Nasscom stated that the transition requires significant adjustments to enterprise resource planning configurations, invoicing, and tax calculation processes. According to the industry body, marketplaces must assess how these provisions apply to their specific operating models and test systems before full deployment. The organization also urged the finance ministry to facilitate consultations with ecommerce operators and logistics providers to address implementation challenges.

The revised rules also broaden the scope of affected services, replacing the term “local delivery” with “delivery services, other than postal and courier services.” Whether the government will extend the deadline remains uncertain as businesses wait for further guidance from the finance ministry.