Section 9(5) of the CGST Act is a reverse-charge style rule for e-commerce operators (ECOs): for services the government notifies, the operator must pay the GST instead of the person supplying the service. The change most relevant to marketplace sellers is that local delivery services supplied through an ECO by unregistered suppliers became the operator's tax liability at 18%, from 22 September 2025. This is general information, not tax advice.
What did the September 2025 change say?
An EY alert on the notifications dated 17 September 2025 says an ECO must pay tax at 18% on local delivery services provided through it by unregistered suppliers, and that local delivery services by or through an ECO were taken out of the Goods Transport Agency category. The alert lists a series of notifications from No. 9/2025 to 17/2025 (Central Tax Rate), but does not say which one carries this change. Look up the exact notification number from CBIC before you quote it.
Who is affected?
A news summary of CBIC's FAQ says: delivery by a registered person directly attracts 18% GST payable by the supplier; delivery through an ECO by an unregistered person means the ECO pays; delivery through an ECO by a registered person means the registered delivery partner pays. The summary is secondary, so treat it as a pointer to the CBIC FAQ, not the rule.
For a product seller on Amazon.in or Flipkart, the direct effect is limited. You sell goods, you are registered, and the operator collects TCS under Section 52. Section 9(5) matters if you are a delivery partner, or if you want to understand why a platform treats some service lines differently. We have not confirmed which other services are notified under Section 9(5) beyond local delivery, so check the CBIC notification list.
What should I do about it?
Three practical steps. First, find out whether you supply any service through a platform at all; most product sellers do not. Second, if you do, ask the platform how it treats the tax on that service, since it may deduct or add the tax at its end. Third, keep the platform's tax invoices and the GST portal records together so your accountant can reconcile them. The CBIC position is still reported mainly through secondary summaries in what we could open, so ask your practitioner to read the notification itself.
Section 9(5) and your marketplace fees
GST on the fees a marketplace charges you is a different topic; see GST on marketplace fees. Registration for sellers is also separate; see Rule 14B.
Blooprint, a Bengaluru e-commerce agency, can help read your Amazon settlement reports through its Amazon account management service, but tax treatment is for your chartered accountant.