GST Council may clarify tax treatment of e-commerce logistics

The GST Council is expected to provide clarity on the tax treatment of e-commerce logistics systems following divergent appellate rulings across states. West Bengal's Appellate Authority for Advance Ruling rejected an exemption claim related to Flipkart's logistics model, while Tamil Nadu's AAR ruled in favour of exemption on similar grounds.

The conflicting decisions highlight the need for uniform interpretation of GST rules governing third-party logistics services used by major e-commerce platforms. Industry stakeholders await GST Council guidance to resolve the ambiguity and ensure consistent tax treatment nationwide.