Nasscom seeks deferment of revised GST framework for e-commerce delivery services to January 1

New Delhi, Oct 29 (PTI) Nasscom has reached out to the Finance Ministry seeking a two-month deferment of the revised GST treatment for delivery services facilitated through e-commerce companies, moving implementation to January 1, 2027, the IT industry body said in a blog.

     The GST Council has recommended a 5 per cent rate without input tax credit, but companies are still awaiting the final notification. Given the scale of e-commerce operations, implementing the changes requires extensive updates across technology, billing, accounting and tax systems, followed by testing and validation.

     The IT industry body has cited a shortage of time to make changes in the system as per the provisions of the new rule, given that a notification issued by the GST Council on October 27 has set November 1 for its implementation.

     "Nasscom has submitted a representation to the Ministry of Finance on 28 October 2026, seeking an adequate transition period for implementing the revised GST treatment of delivery services facilitated through Electronic Commerce Operators (ECOs), as recommended by the 57th GST Council," the blog said.

     Nasscom said that e-commerce businesses process large volumes of transactions through interconnected technology and accounting systems. The revised framework would require changes to ERP configurations, invoicing, tax calculations, ITC treatment and GST compliance processes.

     Businesses would also need time to assess the final notified provisions, evaluate their impact across different operating models, implement system changes and undertake adequate testing to ensure a smooth transition, the blog said.

     "Nasscom has requested the Government to consider... deferring implementation to 1 January 2027 based on industry assessments, to provide additional time for businesses to complete the necessary technology, accounting, tax and operational changes," the blog said.

     Nasscom has asked the government to conduct an industry consultation to engage with e-commerce operators, logistics providers and other affected stakeholders to address implementation challenges, clarify requirements and facilitate a coordinated transition.

(This story has not been edited by THE WEEK and is auto-generated from PTI)