The Central Board of Indirect Taxes and Customs (CBIC) has clarified that a uniform 5% Goods and Services Tax () will apply to cab aggregators such as Ola and Uber and delivery platforms, including Swiggy, Zomato, Flipkart and Amazon, irrespective of their business models, according to a report by NDTV Profit.
The GST Council had endorsed a uniform tax treatment for operators, regardless of how their businesses are structured, CBIC member for GST Sanjay Mangal was quoted as saying by the publication.
The 5% levy will cover platforms that connect customers with delivery providers as well as those that offer delivery services directly.
Mangal said the government had rationalised the GST rate structure into two broad rates and one special rate, with greater stability and predictability now among its priorities for businesses.
GST rate revisions to take place annually from April 1
The government plans to undertake changes once a year, with the revised rates taking effect from April 1. The GST Council is expected to make decisions ahead of the beginning of each financial year.
The approach is intended to provide businesses with greater certainty when planning their operations and managing tax compliance.
Next phase of GST reforms to focus on compliance and refunds
Mangal said GST reforms would remain an ongoing exercise, with the next phase focusing on simplifying routine compliance for taxpayers, improving registration and refund processes, and making input tax credit (ITC) claims smoother.
The government is also examining sector-specific concerns involving blocked input tax credit.
Issues concerning ITC on motor vehicles will be referred to a Group of Officers for consideration. The question of input tax credit claims on construction has not yet been taken up, Mangal said.
Input tax credit refund rules clarified
On refunds arising from accumulated credit under the inverted duty structure, Mangal said input credit available from November 1 would be eligible for refunds under the applicable framework.
He also said ITC claimed on or after April 1, 2027, would be available for credit, while the changes would not cover past accumulated credit, which can be used to pay tax.
The eligibility and treatment of input tax credit will depend on the applicable rules and the relevant time periods.
Invoice Management System to become mandatory
The Invoice Management System (IMS) will become mandatory from the next financial year, according to Mangal.
The mechanism is expected to streamline business processes, improve integration across supply chains and reduce notices arising from mismatches in tax liabilities.
The CBIC will also release a framework for faceless assessments for public feedback. The proposed system is intended for taxpayers registered under the Central GST administration.
Effective GST rate falls to 10.84% after rationalisation
Mangal said the effective GST rate had declined to 10.84% following the rationalisation of tax rates.
Despite the changes, taxable supplies had increased, while revenue growth had reached 15% over the preceding three months, he said.
With differences between GST rates expected to be eliminated under the revised structure, Mangal said subsequent growth would be reflected in revenue collections.
However, he declined to estimate when monthly GST collections would reach ₹3 trillion, stating that growth was progressing steadily and was expected to accelerate.