New GST on E-Commerce Operator Services and Marketplace Commissions
With the rise of online shopping platforms like Amazon, Flipkart, Zomato, and Swiggy, the role of e-commerce operators in India’s economy has become more significant than ever. But with that growth comes compliance—and that’s where GST steps in. In this blog, we explain the gst on e commerce operator services, who is liable to pay it, and how it impacts sellers and platforms.
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New GST Rate on E-Commerce Operator (ECO) Services in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common ECO charges and pass-throughs (no compensation cess).
| Service | New GST Rate |
|---|---|
| Commission charged by ECO | 18% |
| Delivery charges (collected by ECO) | 18% |
| Listing, hosting, and tech fees | 18% |
| Restaurant service through ECO | 5% |
Notes: The rationalised structure removes the 12% slab. Most platform fees remain at 18%. Restaurant supplies made via ECO continue at 5% (no ITC to the restaurant). Where an ECO’s delivery fee is a distinct service, it is generally taxed at 18%; if bundled as part of a principal supply by a merchant, the rate may follow the principal supply.
Who Is an E-Commerce Operator?
As per GST law, an E-Commerce Operator (ECO) is any digital platform that:
- Facilitates the supply of goods or services
- Connects sellers and buyers
- Collects payment on behalf of sellers
Examples include marketplaces (Amazon, Flipkart), food delivery platforms (Swiggy, Zomato), and ride-hailing apps (Ola, Uber).
E-Commerce and GST: Basic Rules
| Service | GST Rate |
|---|---|
| Commission charged by ECO | 18% |
| Delivery charges (collected by ECO) | 18% |
| Listing, hosting, and tech fees | 18% |
| Restaurant service through ECO | 5% |
So, the gst on e commerce operator services like commissions, convenience fees, and hosting charges is 18%.
Who Pays GST: Seller or Platform?
- Marketplace Commission – GST is paid by the platform. Sellers can claim Input Tax Credit.
- Restaurant Orders – ECO collects and pays 5% GST on behalf of restaurants.
- Seller Sales – Sellers are responsible for charging GST, filing GST returns, and complying with TCS provisions.
TCS under GST for E-Commerce Operators
Platforms must collect TCS @1% on the net value of taxable supplies and deposit it with the government.
| TCS Rate | GST Type |
|---|---|
| 0.5% CGST + 0.5% SGST | Intra-state |
| 1% IGST | Inter-state |
Sellers can claim credit for TCS collected by the platform while filing GSTR-3B.
GST Registration for Sellers on E-Commerce Platforms
If you sell on an ECO like Flipkart, Amazon, or Zomato, GST registration is mandatory—even if your turnover is below ₹20 lakh. This is because Section 24 of the CGST Act overrides the exemption limit.
Input Tax Credit for Sellers
Sellers can claim ITC on:
- Platform commission GST
- Packaging and logistics
- Ads paid to the platform
- Warehouse or courier charges
Conclusion
Understanding the gst on e commerce operator services is crucial for sellers, platforms, and even end consumers. It ensures transparency in commissions, taxes, and compliance across India’s growing digital marketplace.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions (FAQs)
- What is the GST on e-commerce operator commission?Platforms charge 18% GST on commission, delivery fees, and related services.
- Who pays GST on food delivery through apps?The platform (like Zomato or Swiggy) collects and pays 5% GST on restaurant services.
- Is GST registration mandatory for sellers on Amazon or Flipkart?Yes, even small sellers must register under GST to sell on e-commerce platforms.
- What is the role of TCS in e-commerce and GST?Platforms must deduct 1% TCS on seller sales and deposit it with the government. Sellers can claim it in returns.
- Can sellers claim Input Tax Credit on platform charges?Yes, GST paid on commission and services is eligible for ITC.
