- Uniform 5% GST applies to cab aggregators and delivery platforms regardless of business structure
- GST Council endorsed uniform tax treatment for operators under different business models
- GST rate rationalised into two broad rates and one special rate for stability and predictability
The CBIC has clarified that a uniform 5% GST will apply to cab aggregators such as Ola and Uber and delivery platforms including Swiggy, Zomato, Flipkart and Amazon, regardless of how their businesses are structured.
Sanjay Mangal, CBIC's Member for GST, told NDTV Profit that the Council had endorsed a uniform tax treatment for operators, irrespective of the model under which they conduct business.
The 5% levy will cover both platforms that connect customers with delivery providers and those that offer delivery services directly.
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Mangal said the GST rate structure had been rationalised into two broad rates and one special rate, with the government now prioritising stability and predictability for businesses.
Going forward, GST rate changes will be undertaken once a year, effective April 1, with the GST Council expected to take decisions ahead of the beginning of the financial year.
On the next phase of GST reforms, Mangal said the exercise would remain continuous, with a focus on simplifying taxpayers' day-to-day compliance, improving registration and refund processes, and making input tax credit (ITC) claims smoother.
ITC, Refunds And Compliance
The government is also examining sector-specific concerns around blocked input tax credit.
Mangal said issues relating to motor vehicles would be referred to a Group of Officers, while the question of ITC claims on construction has not yet been taken up.
On refunds arising from accumulated credit under the inverted duty structure, he said input service credit available from November 1 would be eligible for refunds under the applicable framework.
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 Invoice Management System (IMS) will become mandatory from the next financial year.
According to Mangal, the mechanism is expected to streamline business processes, improve supply-chain integration 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 envisaged for taxpayers registered with the Central GST administration.
GST Collections And Growth
Mangal said the effective GST rate had declined to 10.84% following the rate rationalisation.
Despite the changes, taxable supply had increased, while revenue growth had reached 15% over the preceding three months.
With rate differences expected to be eliminated under the revised structure, Mangal said subsequent growth would be reflected in revenue collections.
He, however, declined to estimate when monthly GST collections would reach Rs 3 trillion, saying growth was progressing steadily and was expected to accelerate.
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