Recently, a claim has gained traction on social media, alleging that the Finance Minister (FM) instituted a 5% Goods and Services Tax (GST) on e-commerce delivery services merely 48 hours after she asserted that no taxes had been increased.
However, a fact-check conducted by LatestLY has deemed this assertion to be categorically untrue.
Verification of Claims
The circulating allegation insinuates a new tax regimen, stating, “Just 48 hours post-claiming no tax hikes, FM Nirmala imposed 5% GST on e-commerce delivery services: Report.”
This statement has proliferated across social media platforms, engendering confusion and criticism concerning the government’s fiscal policies.
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Fact Check: Did Nirmala Sitharaman Enforce a 5% GST on E-Commerce Delivery Services?
The assertion made in this post is incorrect and not rooted in fact.
Delivery services, such as those from food applications, were previously taxed at 18%.
The taxation on these delivery services has now been diminished to 5%, as endorsed during the 57th GST Council meeting.
All e-commerce delivery services now uniformly attract a tax rate of 5%.
Thus, there exists no new tax imposition; rather, there is a significant tax reduction.
It is urged that misrepresentations should not be propagated. @IndianGems_
— CBIC (@cbic_india) October 10, 2026
Evidence and Official Rebuttals
The editorial team at LatestLY has substantiated that the aforementioned claim is devoid of truth. During the 57th GST Council meeting, presided over by Union Finance Minister Nirmala Sitharaman, no new tax was instated; instead, a uniform 5% GST rate was recommended for delivery services associated with goods supplied through e-commerce operators (ECOs) without the provision for input tax credit (ITC).
Before this adjustment, delivery services—particularly those facilitated by food apps—were encumbered by an 18% tax rate.
Furthermore, the Press Information Bureau (PIB) has conveyed details concerning the 57th GST Council meeting, corroborating the recommendation for a 5% GST rate without ITC for e-commerce delivery services, with the exception of courier and postal services, in situations where the service provider is not liable for tax registration.
This modification is designed to standardize tax treatment and mitigate the ambiguity in the existing framework, as reported by IBTimes India.
Context and Implications
The transition to a uniform 5% GST on e-commerce delivery services signifies a decrease from the previous 18% rate, with the intent to streamline the tax structure for these services.
Additionally, Alvarez & Marsal has highlighted that the GST Council’s recommendation includes amendments to Section 9(5) of the CGST Act to elucidate the tax liability of ECOs for specified services.
This alteration promises consistency in tax application across all modalities of transportation pertaining to e-commerce deliveries, as reported by maritimegateway.com and mathrubhumi.com.
Final Assessment
The assertion that Finance Minister Nirmala Sitharaman introduced a new 5% GST on e-commerce delivery services after denying any tax increases is unfounded.
Rather, the 57th GST Council meeting suggested a reduction in the GST rate for these services from 18% to a standardized 5%, aimed at clarifying and simplifying the tax system.
Source link: Latestly.com.
