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Central Tax (Rate)Medium impact for ecommerce sellers

GTA services for goods supplied through e-commerce operators carved out of entry 21A, with new Nil entries added

Official text · Summary prepared automatically

Document
Notification No. 07/2026-Central Tax (Rate)
Issued
27 Oct 2026
Effective
1 Nov 2026
Issued by
Ministry of Finance (Department of Revenue), Government of India
Official PDF(opens in a new tab)

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What it means for ecommerce sellers

From 1 November 2026, the entry at serial number 21A of Notification No. 12/2017-Central Tax (Rate) does not apply to services provided by a goods transport agency in relation to goods supplied through an electronic commerce operator. The notification also substitutes the definition of goods transport agency as any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called. Goods transport agencies, and sellers whose goods are supplied through an electronic commerce operator and moved by such agencies, are affected; the notification does not state what tax treatment applies to these services instead. The other changes cover helicopter seat-share travel in specified states, warehousing of agricultural produce and seeds, and new Nil entries that do not concern ecommerce sellers.

Who it affects

  • Goods transport agencies providing services in relation to goods supplied through an electronic commerce operator
  • Sellers whose goods are supplied through an electronic commerce operator and transported by a goods transport agency
  • Providers of helicopter transport on seat share basis embarking from or terminating at airports or helipads in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura or at Bagdogra in West Bengal
  • Providers of storage or warehousing of cereals, pulses, fruits, vegetables, and seeds meant for sowing
  • Seamen's Provident Fund Organisation
  • Central Government, State Government, Union Territory, Local Authority, Governmental Authority or Government Entity granting toll rights
  • Providers of curing of coffee supplied to coffee cultivators

What to do

  1. A goods transport agency or seller would identify road transport services relating to goods supplied through an electronic commerce operator on or after 1 November 2026, since entry 21A does not apply to them from that date.
  2. A transporter would check whether it meets the substituted definition of goods transport agency: provides service in relation to transport of goods by road and issues a consignment note by whatever name called.
  3. A warehousing provider would compare its services with the substituted description against serial number 24B and the new definition of seed.

Provisions referred to: Section 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 148, Central Goods and Services Tax Act, 2017; Notification No. 12/2017-Central Tax (Rate), dated 28 June 2017; Clause (d) of section 3, Coffee Act, 1942; Seamen's Provident Fund Act, 1966

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Official text

As issued by Ministry of Finance (Department of Revenue), Government of India. 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.

Type a word, number or section to highlight it below.

[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. 07 /2026-Central Tax (Rate) New Delhi, the 27 th October, 2026 G.S.R. -----(E). - In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 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 12/2017-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. 691(E), dated the 28th June, 2017, namely:- In the said notification, (a) in the Table - (i) against serial number 15, in column (3), after item (a), the following item shall be inserted, namely: - “(aa) air, in a helicopter on seat share basis, embarking from or terminating in an airport including a helipad located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura or at Bagdogra located in West Bengal”; (ii) against serial number 18, in column (3), the explanation shall be omitted; (iii) against serial number 21A, in column (3), after clause (f), the following explanation shall be inserted, namely: - “Explanation. - Nothing contained in this entry shall apply to services provided by a goods transport agency in relation to goods, where such goods are supplied through an electronic commerce operator.”; (iv) against serial number 24B, in column (3), the following shall be substituted, namely: - “Services by way of storage or warehousing of cereals, pulses, fruits, vegetables, and seeds meant for sowing”; (v) after serial number 31A and the entries relating thereto, the following serial number and entries relating thereto shall be inserted, namely: - (1) (2) (3) (4) (5) “31AA Heading 9971 or Heading 9991 Services by Seamen's Provident Fund Organisation to persons governed by the Seamen's Provident Fund Act, 1966 (4 of 1966). Nil Nil”; (vi) after serial number 42 and the entries relating thereto, the following serial number and entries relating thereto shall be inserted, namely: - (1) (2) (3) (4) (5) “42A Heading 9973 Services by way of grant of exclusive right of way or access, license and authority to demand, collect and appropriate toll fee by the Central Government, State Government, Nil Nil”; Union Territory, Local Authority, Governmental Authority or Government Entity. (vii) after serial number 54 and the entries relating thereto, the following serial number and entries relating thereto shall be inserted, namely: - (1) (2) (3) (4) (5) “54A Heading 9986 Services by way of curing of coffee supplied to coffee cultivators. Explanation - For the purposes of this entry, “curing” shall have the same meaning as assigned to it in clause (d) of section 3 of the Coffee Act, 1942 (7 of 1942). Nil Nil”; (b) in paragraph 2, (i) for clause (ze), the following clause shall be substituted: - ‘(ze) “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 (zzc), the following clause shall be inserted, namely: - ‘(zzca) “seed” means any plant material, including seedlings, tubers, bulbs, rhizomes, roots, cuttings, all types of grafts, tissue culture plantlets, and other vegetatively propagated material, used or intended for use in propagation or sowing, and includes – (i) seeds of cereals, coarse cereals, pulses, oilseeds, fibre crops, forage and fodder crops, green manures, sugar crops; (ii) seeds of fruits, vegetables, spices, flower crops, ornamental crops and plantation crops; and (iii) planting material.’. 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 12/2017 - Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended vide notification number 16/2025-Central Tax (Rate), dated the 17th September, 2025 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 666(E), dated the 17th September, 2025.

Questions sellers ask

What does Notification No. 07/2026-Central Tax (Rate) change for goods sold through e-commerce operators?

Notification No. 07/2026-Central Tax (Rate) inserts an Explanation against serial number 21A of the Table in Notification No. 12/2017-Central Tax (Rate). It states that nothing in that entry applies to services provided by a goods transport agency in relation to goods supplied through an electronic commerce operator. It comes into force from 1 November 2026. The notification does not reproduce entry 21A or state what treatment applies to such services instead.

How is a goods transport agency defined under Notification No. 07/2026-Central Tax (Rate)?

From 1 November 2026, Notification No. 07/2026-Central Tax (Rate) substitutes clause (ze) in paragraph 2 of Notification No. 12/2017-Central Tax (Rate). A goods transport agency now means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called. The notification does not set out the earlier wording of the definition it replaces.

Which new entries showing Nil are added by Notification No. 07/2026-Central Tax (Rate)?

Notification No. 07/2026-Central Tax (Rate) inserts three entries showing Nil in the last two columns from 1 November 2026: services by the Seamen's Provident Fund Organisation to persons governed by the Seamen's Provident Fund Act, 1966; grant of exclusive right of way or access, licence and authority to collect toll fee by government bodies; and curing of coffee supplied to coffee cultivators.

What warehousing services does serial number 24B cover after Notification No. 07/2026-Central Tax (Rate)?

Notification No. 07/2026-Central Tax (Rate) substitutes the description against serial number 24B of Notification No. 12/2017-Central Tax (Rate) with services by way of storage or warehousing of cereals, pulses, fruits, vegetables, and seeds meant for sowing. A new definition of seed covers plant material such as seedlings, tubers, bulbs, rhizomes, roots, cuttings, grafts and tissue culture plantlets used or intended for propagation or sowing.

When does Notification No. 07/2026-Central Tax (Rate) come into force?

Notification No. 07/2026-Central Tax (Rate), dated 27 October 2026, comes into force with effect from 1 November 2026. It amends Notification No. 12/2017-Central Tax (Rate), dated 28 June 2017, on the recommendations of the Council, under sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017.

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.