GST on Courier & Logistics Services 2025-26 — Rates, RCM & ITC Guide

Private courier companies such as BlueDart, DTDC, Delhivery, Ecom Express, FedEx India, and DHL are taxable at 18% GST on their courier and express delivery services. These services are classified under SAC 9965 (Goods transport services) or SAC 9967 (Supporting services in transport). The 18% rate applies to all modes of delivery — air, road, or multimodal — for domestic shipments. The tax invoice issued by the courier company includes 18% GST (9% CGST + 9% SGST for intra-state, or 18% IGST for inter-state). Businesses receiving courier services can claim Input Tax Credit on the 18% GST paid, provided the service is used for business purposes and the supplier has a valid GST registration and files their returns. Individual/consumer recipients cannot claim ITC. Note: India Post's basic postal services (ordinary letter, postcard, envelope up to 10g) are exempt, but Speed Post and Express Parcel Post by India Post attract 18% GST.

Courier services and Goods Transport Agency (GTA) services are two distinct categories under GST with different rates and compliance requirements. Courier services (SAC 9965/9967) are provided by courier companies like BlueDart, DTDC etc., and are taxed at 18% under forward charge by the courier company. GTA services refer specifically to the transportation of goods by road, where the GTA issues a consignment note. GTA has a unique dual-rate structure: (1) GTA opting for forward charge: 12% GST (with ITC benefit to GTA) or 5% GST (without ITC), depending on the GTA's declaration. (2) GTA under RCM: If the GTA has not opted for forward charge, the recipient (registered business, factory, society, etc.) pays 5% GST under RCM. Key distinction: A courier company takes individual parcels from multiple consignors, consolidates, and delivers door-to-door. A GTA transports a consignment under a consignment note (LR/bilty) for full-truck or part-truck loads. The two are taxed differently and should not be confused.

For export shipments sent via international courier, the GST treatment depends on whether the courier is transporting goods OUT of India (export) or bringing goods IN (import). Export courier services: When an Indian business ships goods abroad via courier for export purposes, the courier service charges 18% GST on their service fee. However, if the Indian exporter is GST-registered, they can claim ITC on this courier cost. The goods themselves, if exported under LUT or with payment of IGST and subsequent refund, are zero-rated. Import courier: Goods imported via courier are subject to Basic Customs Duty, IGST (as a customs levy), and applicable cess — not domestic GST. The IGST on imports is collected at the time of clearance by customs. Foreign courier companies serving Indian recipients for cross-border services may need to register under OIDAR/GST provisions. For intra-India shipments: 18% GST universally applies across all private courier operators regardless of distance or shipment value.

Yes. A GST-registered business can claim Input Tax Credit (ITC) on courier and logistics expenses, provided the following conditions under Section 16 of the CGST Act are satisfied: (1) The courier service is used for the purpose of business (not personal use). (2) A valid tax invoice is received from the courier company (GST-registered supplier). (3) The supplier has filed GSTR-1 and the ITC appears in GSTR-2B of the recipient. (4) Payment is made to the supplier within 180 days of invoice date. (5) ITC is claimed before the time limit under Section 16(4). ITC on courier is particularly valuable for e-commerce companies, exporters, and businesses with high outward shipment volumes. Exporters (zero-rated supply) can claim refund of ITC accumulated on courier/logistics costs. Note: ITC is NOT available on courier services used for employee welfare/personal purposes, or for shipments related to exempt supplies. RCM on GTA (5%) also generates ITC that can be utilised.

Delivery aggregators and hyperlocal logistics platforms like Dunzo, Swiggy Genie, Porter, Shadowfax, and similar on-demand delivery services attract 18% GST on their delivery service charges. These platforms operate as intermediaries connecting senders/businesses with delivery executives and charge a platform/delivery fee. The 18% GST applies to the service fee charged by the aggregator platform. For food delivery specifically (Swiggy, Zomato): under ECO (E-Commerce Operator) provisions introduced in January 2022, Swiggy and Zomato are responsible for collecting and paying GST on restaurant services supplied through their platform on behalf of restaurants that are not registered under GST. The food delivery charge (platform delivery fee) itself attracts 18% GST. Porter and similar logistics aggregators charge GST on their platform fees. Businesses using these aggregators for last-mile delivery can claim ITC on the GST paid on delivery charges, provided they receive a valid tax invoice.