GST Council to consider hub-based e-commerce delivery tax break
The GST Council is expected to consider a proposal to settle a big question for e-commerce companies: should their hub-based delivery models get a tax break?
Right now, if goods are delivered to people not registered under GST, those specified GTA transport services are exempt.
But firms like Flipkart have been caught in the middle, with different states giving opposite rulings on whether their multi-hub systems qualify.
States split on e-commerce GST exemption
With states disagreeing (West Bengal saying no exemption, Tamil Nadu saying yes), the whole industry is left guessing.
The Council's upcoming decision could finally bring one clear rule for everyone, making it easier for e-commerce platforms and delivery partners to plan ahead.
As Congress MP Karti P Chidambaram put it, clear guidelines are overdue and could help level the playing field across the sector.