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Central Tax (Rate)Medium impact for ecommerce sellers

Same-line input tax credit for hospitality, new electric vehicle entries and revised delivery services entry under GST

Official text · Summary prepared automatically

Document
Notification No. 06/2026-Central Tax (Rate)
Issued
27 Oct 2026
Effective
1 Nov 2026
Issued by
Government of India, Ministry of Finance (Department of Revenue)
Official PDF(opens in a new tab)

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What it means for ecommerce sellers

Notification No. 06/2026-Central Tax (Rate) amends Notification No. 11/2017-Central Tax (Rate) in three ways. It allows input tax credit of same-line input services for certain hotel, restaurant, railway food and outdoor catering entries, capped at tax at 2.5% for the hotel and outdoor catering entries. It adds central tax entries for passenger transport and renting of electrically operated vehicles where battery charging cost is included, and substitutes the delivery services entry linked to electronic commerce operators with central tax of 2.5, on the condition that input tax credit on goods and services used in supplying delivery service has not been taken. The changes apply from 1 November 2026; ecommerce sellers are touched mainly through delivery services in relation to goods supplied through an electronic commerce operator, and the notification also omits paragraph 3 of the principal notification without the text stating what that paragraph contained.

Who it affects

  • Suppliers of hotel accommodation procuring hotel accommodation from another supplier
  • Suppliers of restaurant service procuring service from another restaurant service provider other than at specified premises
  • Suppliers of food or drink in trains or at platforms procuring from Indian Railways or IRCTC or their licensees
  • Suppliers of outdoor catering service procuring outdoor catering from another supplier
  • Providers of passenger transport by electrically operated vehicles where battery charging cost is included in the consideration
  • Providers renting electrically operated vehicles for passengers or goods where battery charging cost is included in the consideration
  • Suppliers of delivery services through an electronic commerce operator not liable for registration under sub-section (1) of section 22
  • Suppliers of delivery services in relation to goods supplied through an electronic commerce operator
  • Goods transport agencies

What to do

  1. A hotel accommodation or outdoor catering supplier under the amended serial number 7 entries would take no input tax credit other than on the named same-line input service, and would restrict that credit to tax at 2.5% where the input supplier charges central tax above 2.5%.
  2. A restaurant or railway food supplier under items (ii) and (iii) of serial number 7 would take input tax credit only on the same-line services, or inputs and input services, named in the substituted entry.
  3. A provider of passenger transport or vehicle renting using electrically operated vehicles, where battery charging cost is included in the consideration, would review the new entries (vib) under serial number 8 and (ib) and (ic) under serial number 10 from 1 November 2026.
  4. A delivery service supplier would check whether its services fall under the substituted serial number 12, item (iii), and if so would not take input tax credit on goods and services used in supplying delivery service.
  5. A person providing road goods transport would review the substituted definition of goods transport agency, which refers to issuing a consignment note by whatever name called.

Provisions referred to: Section 9(1), 9(3) and 9(4), Central Goods and Services Tax Act, 2017; Section 11(1), Central Goods and Services Tax Act, 2017; Section 15(5), Central Goods and Services Tax Act, 2017; Section 16(1), Central Goods and Services Tax Act, 2017; Section 148, Central Goods and Services Tax Act, 2017; Section 22(1), Central Goods and Services Tax Act, 2017; Notification No. 11/2017-Central Tax (Rate), dated 28 June 2017

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Official text

As issued by Government of India, Ministry of Finance (Department of Revenue). Where the text starts with “Extract”, only the parts that concern ecommerce sellers are reproduced; the official PDF (opens in a new tab) is the authoritative version.

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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No. 06/2026-Central Tax (Rate) New Delhi, the 27 th October, 2026 G.S.R......(E).- In exercise of the powers conferred by sub-sections (1), (3), and (4) of section 9, sub-section (1) of section 11, sub- section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), number 11/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 690(E), dated the 28th June, 2017, namely:- In the said notification, - a) in the Table, - (i) against serial number 7, in column (3), - (A) against item (i), in column (5), the following entry shall be substituted, namely: - “Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. hotel accommodation service procured from another supplier of hotel accommodation service), has not been taken [Please refer to Explanation No. (iv)]. Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken. Illustration: ‘A’ books a hotel accommodation from ‘B’ for 7,000 per unit per day. ‘B’, for₹ supplying the said service, procures hotel accommodation service from another supplier ‘C’ for 10,000 per unit per day. ‘C’ charges ‘B’ central tax at the rate of 9% ( 900). ‘B’ charges ‘A’ central₹ ₹ tax at the rate of 2.5%, ‘B’ shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of 250 (2.5% of 10,000) and not 900.”;₹ ₹ ₹ (B) against item (ii), in column (5), the following entry shall be substituted, namely: - “Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of restaurant service other than at specified premises), has not been taken [Please refer to Explanation No. (iv)]”; (C) against item (iii), in column (5), the following entry shall be substituted, namely: - “Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of inputs and input services in the same line of business (i.e. supply of goods, being food or any other article for human consumption or any drink, whether in trains or at platforms, procured from Indian Railways or IRCTC or their licensees), has not been taken [Please refer to Explanation No. (iv)]”; (D) against item (iv), in column (5), the following entry shall be substituted, namely: - “Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. Outdoor catering service procured from another supplier of outdoor catering service), has not been taken [Please refer to Explanation No. (iv)] Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken.”; (E) against item (v), in column (5), the following entry shall be substituted, namely: - “Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. outdoor catering service procured from another supplier of outdoor catering service), has not been taken [Please refer to Explanation No. (iv)] Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken. Illustration: ‘A’ engages ‘B’ for a composite supply of outdoor catering together with renting of premises at premises other than specified premises, for a wedding function for 1,00,000. ‘B’, for₹ supplying the said service, engages ‘C’, another outdoor catering service provider, for 60,000. ‘C’₹ charges ‘B’ central tax at the rate of 9% ( 5,400). ‘B’ charges ‘A’ central tax at the rate of 2.5%₹ ( 2,500), ‘B’ shall be entitled to take input tax credit on the input service in the same line of₹ business, i.e. outdoor catering service supplied by ‘C’, only to the extent of 1500 (2.5% of 60,000)₹ ₹ and not 5,400.₹ ”; (ii) against serial number 8, after item (via) in column (3) and the corresponding entries relating thereto in columns (4) and (5), the following shall be inserted, namely: - (3) (4) (5) “(vib) Transport of passengers by any electrically operated vehicle designed to carry passengers where the cost of battery charging is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service of transportation of passengers in an electrically operated vehicle or service of renting of an electrically operated vehicle, procured from another service provider), has not been taken. [Please refer to Explanation No. (iv)] Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5%, shall not be taken. Illustration: ‘A’ engages ‘B’ for transportation of passengers from New Delhi to Gaya in an electrically operated vehicle for Rs. 1000. ‘B’, for supplying the said service, hires an electrically operated vehicle with operator from ‘C’ for Rs. 800.‘C’ charges ‘B’ central tax at the rate of 9% (Rs. 72). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 72. or 9 -”; (iii) against serial number 10, after item (ia) in column (3) and the corresponding entries relating thereto in columns (4) and (5), the following shall be inserted, namely: - (3) (4) (5) “(ib) Renting of any electrically operated vehicle designed to carry passengers where the cost of battery charging is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service of transportation of passengers in an electrically operated vehicle or service of renting of an electrically operated vehicle, procured from another service provider) has not been taken. [Please refer to Explanation No. (iv)] Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5% shall not be taken. Illustration: ‘A’ engages ‘B’ for renting of electrically operated vehicle for transportation of passengers for Rs. 1000. ‘B’, for supplying the said service, rents an electrically operated vehicle with operator from ‘C’ for Rs. 800.‘C’ charges ‘B’ central tax at the rate of 9% (Rs. 72). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 72. or 9 - "(ic) Renting of any electrically operated vehicle for transportation of goods where the cost of battery charging is included in the consideration charged from the service recipient. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service of transportation of goods by an electrically operated vehicle or service of renting of an electrically operated vehicle, procured from another service provider) has not been taken. [Please refer to Explanation No. (iv)] Provided further that where the supplier of input service in the same line of business charges central tax at a rate higher than 2.5%, credit of input tax charged on the input service in the same line of business in excess of the tax paid or payable at the rate of 2.5% shall not be taken. Illustration: ‘A’ engages ‘B’ for renting of electrically operated vehicle for transportation of goods for Rs. 1000. ‘B’, for supplying the said service, rents an electrically operated vehicle with operator from ‘C’ for Rs. 800.‘C’ charges ‘B’ central tax at the rate of 9% (Rs. 72). If ‘B’ charges ‘A’ central tax at the rate of 2.5%, he shall be entitled to take input tax credit on the input service in the same line of business supplied by ‘C’ only to the extent of Rs. 20 (2.5% of Rs. 800) and not Rs. 72. or 9 -”; (iv) against serial number 12, for item (iii) in column (3) and the corresponding entries relating thereto in columns (4) and (5), the following shall be substituted, namely: - (3) (4) (5) “(iii) Delivery services, other than (i) and (ii) above, (a) supplied through electronic commerce operator where the person supplying such services is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017 2.5 Provided that credit of input tax charged on goods and services used in supplying delivery service has not been taken [Please refer to Explanation No. (iv)].”; (b) in relation to goods, where such goods are supplied through an electronic commerce operator. b) paragraph 3 shall be omitted; c) in paragraph 4, relating to Explanation, (i) for clause (xxxx), the following clause shall be substituted: - ‘(xxxx) “goods transport agency” means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called;’ (ii) after clause (xxxxiv), the following clause shall be inserted, namely:- ‘(xxxxv) “electrically operated vehicle” means a road vehicle which runs solely on electrical energy derived from an external source or from one or more electrical batteries fitted to such vehicle and shall include E- bicycles;’. 2. This notification shall come into force with effect from the 1 st day of November, 2026. [F.No. 190354/142/2026-TRU Section-CBIC] (Md. Adil Ashraf) Under Secretary to the Government of India Note: The principal notification number 11/2017-Central Tax (Rate), dated the 28 th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690 (E), dated the 28 th June, 2017 and last amended vide notification number 15/2025-Central Tax (Rate), dated the 17 th September, 2025 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 663(E), dated the 17 th September, 2025.

Questions sellers ask

From when does Notification 06/2026-Central Tax (Rate) apply?

Notification No. 06/2026-Central Tax (Rate), dated 27 October 2026, states that it comes into force with effect from 1 November 2026. It amends Notification No. 11/2017-Central Tax (Rate), dated 28 June 2017, covering same-line input tax credit for certain hospitality and catering entries, new entries for electrically operated vehicles where battery charging cost is included, and a substituted entry for delivery services linked to electronic commerce operators.

What GST rate applies to delivery services through an e-commerce operator from 1 November 2026?

Notification No. 06/2026-Central Tax (Rate) substitutes serial number 12, item (iii) with a central tax entry of 2.5 for delivery services other than items (i) and (ii). The limbs are delivery services supplied through an electronic commerce operator by a person not liable for registration under sub-section (1) of section 22, and delivery services in relation to goods supplied through an electronic commerce operator. The condition is that input tax credit on goods and services used has not been taken.

Can a hotel claim input tax credit on rooms bought from another hotel at the 2.5% rate?

Under Notification No. 06/2026-Central Tax (Rate), a hotel accommodation supplier under item (i) of serial number 7 may take input tax credit on hotel accommodation procured from another hotel accommodation supplier, while other input tax credit must not have been taken. Where the input supplier charges central tax above 2.5%, credit beyond tax at 2.5% is not allowed. In the notification's illustration, on ₹10,000 charged at 9% (₹900), credit is limited to ₹250.

What GST rate applies to renting an electric vehicle for goods transport with battery charging included?

Under Notification No. 06/2026-Central Tax (Rate), new item (ic) under serial number 10 covers renting of any electrically operated vehicle for transportation of goods where battery charging cost is included in the consideration. It carries central tax of 2.5, with input tax credit limited to same-line services and capped at tax at 2.5%, or alternatively 9, against which no condition is shown. The notification defines electrically operated vehicle to include E-bicycles.

Want help working out what this means for your business?

We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.

Contact usWhatsApp us

General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.