New GST on E-Commerce Operator Services and Marketplace Commissions
- The e commerce GST rate on marketplace commission and similar platform service fees is generally 18%; there was no blanket rate change for these services on 22 September 2025.
- An E-Commerce Operator (ECO) is a person that owns, operates or manages a digital or electronic platform for e-commerce.
- Platforms generally charge GST on their commission or service fees, and eligible registered sellers may claim ITC subject to GST rules.
- ECOs required to collect TCS under Section 52 currently collect 0.5% of the net value of applicable taxable supplies.
- GST registration is not compulsory for every seller using an e-commerce platform; eligible small goods and service suppliers may avail threshold relief subject to prescribed conditions.
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
There was no blanket GST rate change for e-commerce platform fees on 22 September 2025. Commission, listing and technology fees generally continue to attract 18% GST. Certain local delivery services supplied through an ECO were brought under Section 9(5) from 22 September 2025.
| Service | GST Rate From 22 Sep 2025 | Rate Before 22 Sep 2025 | Remarks |
|---|---|---|---|
| Commission charged by ECO | 18% | 18% | No rate change |
| Listing, hosting and technology fees | 18% | 18% | No rate change |
| Local delivery service | 18% | 18% | Rate unchanged; specified ECO supplies brought under Section 9(5) from 22 Sep 2025 |
| Restaurant service through ECO, other than at specified premises | 5% | 5% | ECO liable to pay GST under Section 9(5) |
Service
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Service
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Service
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Service
GST Rate From 22 Sep 2025
Rate Before 22 Sep 2025
Remarks
Note: Where delivery is merely part of another composite supply, GST treatment can depend on the principal supply. Separate local delivery services generally attract 18%.
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).
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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 |
TCS Rate
GST Type
TCS Rate
GST Type
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.
