--- title: "New GST on E-Commerce Operator 2026: 18% Rate on E-Commerce" description: "New GST rate on e-commerce operators in 2026 is 18% on all online marketplace services. Busy makes GST compliance easy with automatic rate application." canonical: "https://busy.in/gst-rates/ecommerce-operator/" author: "Vineet Goyal" published: "2025-05-19T08:22:42.000Z" category: "GST Rates" --- - New GST rates effective from September 2025 set most e-commerce operator services at 18%, except restaurant services, which remain at 5%. - An E-Commerce Operator (ECO) is any digital platform that connects buyers and sellers and collects payments, like Amazon or Zomato. - Platforms must pay GST on commissions, while sellers can claim Input Tax Credit (ITC) and are responsible for charging GST on their sales. - E-commerce platforms must collect a 1% Tax Collected at Source (TCS) on taxable supplies and sellers can claim credit for this TCS. - Sellers on e-commerce platforms must register for GST regardless of turnover due to Section 24 of the CGST Act. # 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](https://busy.in/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. ## 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](https://busy.in/gst/gst-fundamentals-all-about-goods-and-services-tax-in-india/) , 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). ## Old E-Commerce and GST: Basic Rules ### (Old GST Rates – Applicable Until 21st September) | 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%. Live Demo Available Today ## Manage Seller-Wise Outstanding Payments on Your Platform Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## Who Pays GST: Seller or Platform? - **Marketplace Commission –** GST is paid by the platform. Sellers can [claim Input Tax Credit](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) . - **Restaurant Orders –** ECO collects and pays 5% GST on behalf of restaurants. - **Seller Sales –** Sellers are responsible for charging GST, filing [GST returns](https://busy.in/gst/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](https://busy.in/gst/a-guide-to-gstr-3b-what-is-gstr-3b/) . ## GST Registration for Sellers on E-Commerce Platforms If you sell on an ECO like Flipkart, Amazon, or Zomato, [GST registration](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) 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](https://busy.in/gst/what-expenses-can-be-claimed-as-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. ## About the author **Vineet Goyal** 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 ### 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**](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) 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**](https://busy.in/gst/who-can-claim-itc-in-india/#:~:text=The%20ITC%20can%20only%20be,the%20date%20of%20the%20invoice.). ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)