Industry body Nasscom has urged the finance ministry to defer the implementation of the revised GST rules for ecommerce delivery services to January 2027. 

In a representation submitted to the ministry on October 28, the industry body sought an adequate transition period for marketplaces to overhaul their technology, accounting and compliance systems in line with the new regime.

It also urged the ministry to conduct consultations with ecommerce operators, logistics providers and other businesses impacted by the new norms. 

It is pertinent to note that the GST rules were notified on October 27 and are scheduled to take effect on November 1, leaving companies only a few days to comply. The changes follow recommendations made by the 57th GST Council on October 8. 

The new norms introduce a 5% GST rate without input tax credit (ITC) for specified delivery services. The rules also revised the scope of services for which ecommerce operators must discharge tax liability.

“While these changes aim to bring greater consistency to GST treatment, their implementation would require significant adjustments across the ecommerce and logistics ecosystem,” Nasscom said.

Citing its rationale, Nasscom said that implementing the new framework would require changes to enterprise resource planning (ERP) configurations, invoicing, tax calculations, input tax credit treatment and GST compliance processes. The industry body also noted that marketplaces would need to examine the notified provisions, assess how they apply to different operating models and test their systems before deployment.

Based on industry assessments, Nasscom requested a January 1 implementation date to complete the necessary adjustments.

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