What is Supplies taxed in the operator’s hands (section 9(5))?

What it says

Normally the business that supplies goods or services pays the GST. Section 9(5) lets the government notify categories of services for which, when they are supplied through an e-commerce operator, the operator pays the tax instead. All the provisions of GST then apply to the operator as if it were the supplier.

Only notified services are covered. Sales of goods through a marketplace are not, so for a D2C brand selling products on marketplaces, section 9(5) does not shift its GST. The marketplace collects GST TCS on those sales instead.

Services notified so far

The main categories are:

• Passenger transport by certain vehicles, such as cab rides through an app.
• Accommodation in hotels, guest houses and similar places, with some exceptions.
• Housekeeping services, such as plumbing and carpentry, with some exceptions.
• Restaurant services, from 1 January 2022, which covers food ordered through food-delivery apps.
• Local delivery services, from 22 September 2025, except where the person providing the delivery is required to register for GST.

The list and its exceptions are set by notification and change from time to time. Check the current notification for any service you sell through a platform.

What it means for the actual supplier

• You do not charge or pay GST on the covered services sold through the operator. The operator does.
• You still report those sales in your GSTR-1 in the separate table for them, so your figures agree with the operator's.
• Your input tax credit must be looked at carefully. Credit on inputs used for supplies on which the operator pays the tax may need to be reversed in part, depending on how those supplies are treated for your business.
• The operator does not collect TCS on supplies on which it pays the tax itself.

Proposals in October 2026

At its 57th meeting on 8 October 2026, the GST Council recommended changes for delivery services ordered through e-commerce operators, including a separate rate without input tax credit, and an amendment to section 9(5) so that the operator's liability does not depend on the business model used. These are recommendations, not law, until the amendments and notifications are issued.