This CBIC notification, No. 09/2026-Central Tax (Rate), dated October 27, 2026, amends Notification No. 17/2017-Central Tax (Rate) to implement recommendations from the 57th GST Council meeting.
Key Statutory Clarifications & Analysis
Point 1
The core amendment relates to the applicability of GST under sub-section (5) of section 9 of the CGST Act, 2017, specifically concerning 'delivery services' provided through Electronic Commerce Operators (ECOs).
2. Applicability & Compliance Framework
Effective November 1, 2026, the amendment substitutes clause (v) of the principal notification.
3. Previously
Certain services supplied through ECOs were subject to GST under the reverse charge mechanism (RCM), meaning the ECO was liable to pay tax.
4. Registration & Revocation Procedures
The revised clause now clarifies that 'delivery services, other than postal and courier services,' when supplied through an ECO, will not be subject to RCM if the person supplying such services is already liable for registration under sub-section (1) of section 22 of the CGST Act, 2017.
Point 5
This implies a shift in tax liability for certain registered suppliers of delivery services, moving it from the ECO to the actual service provider under the forward charge mechanism.
6. Applicability & Compliance Framework
This aims to streamline compliance for registered suppliers and potentially reduce the RCM burden on ECOs for these specific services.
Procedural Changes & Compliance Impact
- Substitution of clause (v) in Notification No. 17/2017-Central Tax (Rate).: This is the core legal amendment, altering the scope of services under Reverse Charge Mechanism (RCM) when supplied through Electronic Commerce Operators (ECOs).
- Exclusion of 'delivery services, other than postal and courier services,' from RCM when the supplier is liable for registration under Section 22(1) of the CGST Act, 2017.: For registered suppliers of specified delivery services operating through ECOs, the tax liability shifts from the ECO (RCM) to the supplier (forward charge). This means these registered suppliers will now be responsible for collecting and remitting GST on their delivery services, rather than the ECO paying it on their behalf. ECOs will no longer be liable for RCM on these specific services from registered suppliers.
- Effective date of November 1, 2026.: Taxpayers, both ECOs and delivery service providers, must ensure their systems and compliance processes are updated to reflect this change from the specified date to avoid non-compliance.