GST service changes from 1 November: hospitality, delivery and toll concessions

The 27 October 2026 service notifications take effect on 1 November. Notification 06/2026-Central Tax (Rate) permits specified same-line input credits for certain hotel accommodation, restaurant, rail catering and outdoor catering entries. For covered hotel accommodation and outdoor catering, the central credit cap is 2.5% of the eligible input-service value where the supplier charges a higher central rate. The notification also adds 2.5% and 9% central tax options for specified electric vehicle passenger transport and renting, and for qualifying electric goods vehicle rentals, where battery charging is included. The lower option restricts credits to eligible same-line services, subject to the cap.

For e-commerce, Notification 09/2026 assigns liability to the operator for covered non-postal and non-courier delivery services, except where the supplier is liable for registration under section 22(1). The amended delivery rate entry in Notification 06/2026 carries a 2.5% central rate and a no-credit condition for supplies within that entry. Notification 07/2026 also excludes goods transport agency services for goods sold through an operator from the specific entry 21A exemption. Notification 08/2026 changes the rate reference in the passenger vehicle renting reverse-charge entry. Check the supplier and invoice conditions before applying it.

Notification 07/2026 revises exemptions for specified seed warehousing and adds exemptions including coffee curing for cultivators and qualifying grants of toll rights. Under Notification 10/2026, eligible Toll-Operate-Transfer concessionaires account for tax on operation and maintenance services by reference to the qualifying escrow charges or debits in the relevant tax period. The Gazette also contains the companion integrated and Union Territory notifications. Check the applicable tax type and exact entry before updating billing.