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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.
Tool: shipping cost