GST on Shipping Charges in India
18% GST on logistics services, invoicing requirements, and what e-commerce sellers should know.
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Shipping services in India attract 18% GST under most B2B logistics contracts.
For sellers
- Courier invoices should show GST separately
- Input tax credit may apply if you are GST-registered
- Display shipping charges clearly on customer invoices
Common mistakes
- Treating COD collection as shipping revenue (it is not — it is customer payment)
- Not reconciling GST lines on courier billing statements
- Missing HSN codes on shipping line items
Consult your CA for ITC eligibility and filing specifics.
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FAQ
- Is GST charged on COD fees?
- GST applies to the logistics service fee component, including COD collection charges.
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