The AAAR has ruled that Flipkart’s hub-based collection and doorstep delivery resembles a courier service rather than a Goods Transport Agency (GTA) service, applicable to 18% GST.
Flipkart's Delivery Model Treated as Courier Service, Not GTA
The Appellate Authority for Advance Ruling (AAAR) has determined that Flipkart's hub-based collection and delivery model is akin to a courier service, not a Goods Transport Agency (GTA), and is thus subject to an 18% GST.
The ruling clarifies that the mere issuance of a 'consignment note' does not transform the operation into an exempt GTA service under GST. This distinction has crucial implications for ecommerce entities regarding their tax liabilities.
Tax practitioners catering to ecommerce businesses must closely consider this ruling, particularly concerning how service categories are classified and the instances in which GST applies, thereby shaping business strategies.
Citations
- Flipkart AAAR Ruling (2026) GST Notification
