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GST Council may clear GST 2.0 reforms: no notices under Rs 10,000, 5% GST on e-commerce delivery of goods
Our read
The compliance-easing measures likely pass, giving small e-commerce sellers the clearest gain, while the 5% delivery levy is the piece most likely to be reworked or delayed.
For operators
If the Council approves on Wednesday, model the proposed 5% GST on e-commerce delivery of goods into your delivery-fee and free-shipping thresholds now, and prepare to onboard small marketplace sellers who could use platform warehouses as registered places of business without separate state registrations.
Watch
The Council's post-meeting briefing on Wednesday confirming or dropping each of the three measures
Ask next
The report,
On Wednesday the GST Council is likely to let small e-commerce sellers treat a platform's warehouse as their registered place of business, which could help about 9.5 lakh of them. They would need a genuine presence in one state.
- Small e-commerce sellers who could benefit
- 9.5 lakh
- No notice for demands below
- ₹10,000
- Share of cases below threshold by number
- 20 per cent
- Proposed GST rate on e-commerce delivery of goods
- 5 per cent
Channel facts
From the report. Source details below
| Share of cases below threshold by number: | 20 per cent |
|---|---|
| Centre-state working group meetings in past year: | more than eight |
| GST National Coordination Committee meetings: | three |
Signals to track
- A CBIC circular or notification fixing the Rs 10,000 notice threshold and the 5% delivery rate
- Platform statements on whether the delivery charge is absorbed or passed on to buyers
- Objections from states, or a referral to a committee, over the delivery levy
- Seller-side reports of new registrations or expansion into more states once warehouses count as places of business
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- The GST Council is likely to approve the notice floor below Rs 10,000 and the warehouse-as-place-of-business change, since both ease compliance, while debating the 5% delivery levy longest.
- Large e-commerce platforms are likely to say the 5% GST on delivery of goods will be passed on to buyers or sellers, and may restructure how delivery fees are shown on invoices.
- Small sellers, about 9.5 lakh of whom stand to benefit, are likely to extend their reach to more states through platform warehouses once the rule takes effect, without separate state registrations.
- Tax authorities are likely to issue circulars or notifications setting out how the notice floor applies and how the warehouse rule works, after the Council clears the package.
- Offline and multi-channel retailers may argue that a tax applied only to e-commerce delivery tilts pricing, and may press for parity through industry bodies.
The source
Published
Confirmed by Hindustan Times, NDTV Profit, Times of India, Financial Express, ET Retail, Deccan Herald Business, News18
First seen