GST Council May Clarify Tax on E-commerce Logistics Firms

The GST Council may clarify the tax treatment of logistics companies working with e-commerce platforms. The issue is up for the October 8 meeting.
Conflicting rulings have created confusion. The West Bengal AAR held that such services attract 18 percent GST.
The Tamil Nadu AAR took the opposite view. It ruled that similar services were exempt from GST.
The contradictory orders have left companies unsure of their tax liability. Industry bodies have sought a clear ruling.
A council clarification would apply across states. It would end the current patchwork of interpretations.
E-commerce logistics is a large and growing sector. Delivery and warehousing firms handle millions of orders daily.
Tax experts say uniformity will reduce disputes. Companies can then price their services with certainty.
The council meets on October 8, 2026. Its decision will be watched closely by the logistics industry.
Small logistics firms are hit hardest by the uncertainty. A clear ruling would help them plan costs and contracts better.
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