Ecom logistics sector seeks clarity on GST rules for delivery, GTA services

MSME-focused e-commerce platforms have warned that ambiguity over GST treatment of local delivery and GTA services is creating compliance risks, potential double taxation, and operational disruptions

India’s ecommerce logistics sector is seeking urgent clarity on goods and services tax (GST) rules following recent amendments.

 

The Forum for Internet Retailers, Sellers & Traders (FIRST India), representing more than 300 MSME-focused online platforms, has written to Finance Minister Nirmala Sitharaman, highlighting ambiguity over whether intra-state and short-distance deliveries fall under Goods Transport Agency (GTA) services or the newly defined “local delivery services.”

 

The group warned that unclear GST liability risks operational disruptions, compliance challenges, and potential double taxation, urging the ministry to issue guidance to ensure uniform treatment and safeguard small sellers’ participation in India’s digital retail ecosystem.