Last Mile Taxation

The recommendation by the 56th GST Council on 3rd September to incorporate local delivery services within Section 9(5) of the CGST Act marks a significant step forward in aligning GST regulations with India's evolving gig economy landscape. This shift transfers the compliance responsibility from individual delivery partners, many of whom currently operate without registration, to e-commerce operators (ECOs). J the App by JustIDT analyses the recommendation for the proposed adjustment seeks to tackle revenue leakage issues and promote uniformity in taxing final-mile logistics.