Circular No.: 39-09/2025-PD Issued By: Government of India, Ministry of Communications, Department of Posts, Parcel Directorate, New Delhi – 110021 Date: 31.07.2026 Signed By: Dr. Annu Paul, Additional General Manager To: All Heads of Circles, Addl DG (APS)
Quick Summary (Read This First)
- India Post has introduced a new service — India Post Parcel Last Mile.
- It starts from 01.08.2026.
- It is only for bulk / contractual (corporate) customers who sign an agreement with the Department of Posts.
- A new tariff structure for India Post Parcel and Speed Post Parcel has been introduced.
- The discount structure has also been revised, applicable from 01.08.2026.
- Rules changed through amendment in Post Office Regulations, 2024 vide S.O. 4241 (E.) dated 31.07.2026, Gazette ID CG-DL-E-31072026-275011.
- Circles have been asked to give wide publicity to these rates and onboard more customers.
Why This Change Was Made
The letter explains the background in simple points:
- The parcel and logistics industry in India is changing fast.
- E-commerce is growing continuously.
- Customers now want faster and more reliable delivery.
- Supply chains are becoming digital.
- Private players are offering standard, customer-centric products with transparent pricing.
- India Post has a huge network, deep reach and public trust.
- In the Union Budget, the Hon’ble Finance Minister said India Post will be turned into a large logistics organisation.
- So the Department needs to redesign its product portfolio and move from a postal operator to a technology-enabled, competitive, scalable logistics enterprise.
A committee studied the existing parcel products and their tariff against market offerings. The committee recommended:
- Review of tariff and discount structure.
- Uniformity in tariff between India Post Parcel and Speed Post Parcel.
- Differential pricing for retail and bulk customers, instead of a discount-driven business.
- Better and effective revenue recovery.
- A new service for parcels inducted directly at delivery post offices or parcel hubs, where the parcel does not need to travel to another delivery jurisdiction.
The Competent Authority accepted these recommendations.
1. India Post Parcel Last Mile — Key Features
The features given in Annexure I are:
- Parcel shall be booked at the office of delivery, or at the identified parcel hub / parcel processing centre, for delivery within the local jurisdiction of that office.
- The service is available only to bulk or corporate customers who enter into an agreement with the Department of Posts.
- Maximum permissible weight is 5 kilograms.
- Postage will be charged on volumetric weight or gross weight, whichever is higher.
- Proof of delivery, insurance, cash on delivery and other value-added services are available on payment of the applicable fee (same as India Post Parcel).
- The parcel shall be delivered at the given address, unless specified otherwise.
- Compensation provisions of Table V of Schedule I for India Post Parcel apply to this service mutatis mutandis.
India Post Parcel Last Mile — Tariff
| Weight Slab | Booked / inducted at Delivery Office (₹) | Booked / inducted at identified Parcel Hub or Parcel Processing Centre (₹) |
|---|---|---|
| Upto 2000 grams | 15 | 20 |
| 2001 – 5000 grams | 22 | 35 |
Note: Goods and Services Tax (GST) shall be levied as applicable.
2. Rationalisation of Tariff Structure
Points from the letter:
- The existing tariff of India Post Parcel – Retail was not distance linked.
- To bring uniformity and to match market offerings, a new tariff structure has been introduced for India Post Parcel and Speed Post Parcel.
- The revised tariff is given in Annexure II.
(Note: In the circular text, this clause mentions the date as 01.08.2024, while the service and discount structure are effective from 01.08.2026. Readers should follow the official circular / any corrigendum issued by the Directorate.)
India Post Parcel — Retail Tariff (₹)
| Weight Slab | Local | Within State | Zone / Metro | Other States |
|---|---|---|---|---|
| Upto 500 grams | 28 | 65 | 70 | 72 |
| 501 – 1000 grams | 48 | 91 | 106 | 114 |
| 1001 – 1500 grams | 60 | 117 | 142 | 171 |
| 1501 – 2000 grams | 87 | 160 | 198 | 239 |
| 2001 – 3000 grams | 116 | 219 | 277 | 337 |
| 3001 – 4000 grams | 145 | 268 | 344 | 420 |
| 4001 – 5000 grams | 174 | 324 | 420 | 515 |
| Every additional 1 kg | 30 | 50 | 70 | 90 |
India Post Parcel — Contractual Tariff (₹)
| Weight Slab | Local | Within State | Zone / Metro | Other States |
|---|---|---|---|---|
| Upto 500 grams | 27 | 31 | 34 | 35 |
| 501 – 1000 grams | 31 | 44 | 51 | 57 |
| 1001 – 1500 grams | 36 | 58 | 70 | 80 |
| 1501 – 2000 grams | 45 | 80 | 100 | 115 |
| 2001 – 3000 grams | 57 | 100 | 125 | 145 |
| 3001 – 4000 grams | 69 | 120 | 150 | 175 |
| 4001 – 5000 grams | 81 | 140 | 175 | 205 |
| Every additional 1 kg | 15 | 20 | 25 | 30 |
Speed Post Parcel — Retail Tariff (₹)
| Weight Slab | Local | Within State | Zone / Metro | Other States |
|---|---|---|---|---|
| Upto 500 grams | 28 | 76 | 82 | 90 |
| 501 – 1000 grams | 48 | 101 | 137 | 143 |
| 1001 – 1500 grams | 60 | 130 | 182 | 228 |
| 1501 – 2000 grams | 87 | 178 | 254 | 319 |
| 2001 – 3000 grams | 116 | 243 | 355 | 450 |
| 3001 – 4000 grams | 145 | 298 | 441 | 560 |
| 4001 – 5000 grams | 174 | 361 | 539 | 686 |
| Additional 1 kg | 35 | 60 | 95 | 120 |
Speed Post Parcel — Contractual Tariff (₹)
| Weight Slab | Local | Within State | Zone / Metro | Other States |
|---|---|---|---|---|
| Upto 500 grams | 28 | 36 | 40 | 47 |
| 501 – 1000 grams | 31 | 49 | 65 | 71 |
| 1001 – 1500 grams | 36 | 64 | 110 | 150 |
| 1501 – 2000 grams | 45 | 89 | 140 | 190 |
| 2001 – 3000 grams | 57 | 111 | 190 | 250 |
| 3001 – 4000 grams | 69 | 133 | 235 | 305 |
| 4001 – 5000 grams | 81 | 156 | 275 | 350 |
| Additional 1 kg | 15 | 25 | 60 | 65 |
Note: GST shall be levied as applicable on all the above rates.
3. Revised Discount Structure (Annexure III)
Since a new, business-centric tariff structure has come in, the discount structure was also rationalised. Applicable w.e.f. 01.08.2026 for India Post Parcel and Speed Post Parcel.
| Monthly Revenue | Credit Facility | Advance Deposit Facility |
|---|---|---|
| ₹50,000 – ₹5,00,000 | 5% | 7% |
| ₹5,00,001 – ₹25,00,000 | 7% | 9% |
| ₹25,00,001 – ₹1,00,00,000 | 10% | 12% |
| ₹1,00,00,001 – ₹5,00,00,000 | 12% | 14% |
| ₹5,00,00,001 and above | 15% | 17% |
Simple meaning:
- Higher the monthly revenue of the customer, higher the discount.
- Customers paying by advance deposit get a higher discount than customers using the credit facility.
4. Action Points for Circles and Offices
- Circles must give wider publicity of these rates to target customers and existing customers.
- Circles must take action to grab more business and onboard more customers.
- CEPT has been requested to modify the system software as per the revised guidelines for both bulk and individual customers, and release it before the due date of implementation.
- Copies sent to Secretary (Posts), DG Postal Services, Members of Postal Service Board, CGM (CCS & RB and PLI Directorate), DDG (Vigilance), Director RAKNPA / PTCs, all PMsG, all DDsG and all PAOs.
5. What Counter Staff and Delivery Staff Should Remember
- Last Mile parcels are local jurisdiction only — no transmission to another delivery office.
- Only agreement-based bulk/corporate customers are eligible.
- Weight limit is 5 kg, not more.
- Always compare volumetric weight vs gross weight and charge the higher one.
- Booking point matters — rate at delivery office is lower than at parcel hub.
- GST is extra on all slabs.
- Value-added services (POD, insurance, COD) are charged separately.
Why This Circular Is Important for India Post Departmental Exam Aspirants
Departmental promotion exams regularly ask questions from the latest India Post circulars, mail and parcel operations, and rate structures. So this circular is useful study material for:
- GDS to MTS Departmental Exam aspirants
- GDS to Postman / Mail Guard aspirants
- MTS to PA / SA aspirants
- Postman to PA / SA aspirants
- Postal Assistant / Sorting Assistant exam aspirants
Points you should note for exam preparation:
- Name of the new service, effective date, and eligible customer type.
- Maximum weight limit (5 kg).
- Weight rule — volumetric or gross, whichever is higher.
- Both tariff tables (retail vs contractual).
- Discount slabs — credit facility vs advance deposit facility.
- Gazette / regulation reference details.
If you are preparing for the GDS to MTS exam, GDS to Postman exam, MTS to PA exam or Postman to PA exam, keep a separate notebook for such circulars. Questions on India Post current affairs, India Post GK, mail operations and parcel products are commonly asked.
Helpful Resources for India Post Departmental Exam Preparation
For candidates searching for study support, the following are the most searched topics online:
- GDS to MTS Online Classes, GDS to MTS Coaching, GDS to MTS Course
- GDS to MTS Syllabus, GDS to MTS Exam Pattern, GDS to MTS Eligibility Criteria
- GDS to MTS Previous Year Question Papers, GDS to MTS Question Bank, GDS to MTS Mock Test
- GDS to MTS Notification, GDS to MTS Admit Card, GDS to MTS Result, GDS to MTS Exam Date
- GDS to MTS Salary, GDS to MTS Selection Process, GDS to MTS Promotion
- GDS to Postman Online Classes, GDS to Mail Guard Study Material, GDS to Postman Mock Test
- MTS to PA Online Classes, MTS to PA Previous Year Question Papers, MTS to PA Syllabus
- Postman to PA Online Classes, Postman to PA Question Paper, Postman to PA Result
- Postal Assistant Coaching, PA SA Departmental Exam, Postal Assistant Study Material
- India Post Departmental Exam Coaching, India Post Mock Tests, India Post Previous Year Question Papers
Circle-wise aspirants (Delhi Circle, Punjab Circle, Haryana Circle, Rajasthan Circle, Uttar Pradesh Circle, Bihar Circle, Madhya Pradesh Circle, Maharashtra Circle, Gujarat Circle, Tamil Nadu Circle, Karnataka Circle, Kerala Circle, Odisha Circle, Assam Circle and West Bengal Circle) can follow the same preparation plan, since the syllabus pattern is common.
Frequently Asked Questions (FAQ)
Q1. What is India Post Parcel Last Mile? It is a new parcel service for local delivery, where the parcel is booked at the delivery office or identified parcel hub and delivered within that office’s local jurisdiction.
Q2. From which date is it effective? From 01.08.2026.
Q3. Who can use this service? Only bulk or corporate customers who enter into an agreement with the Department of Posts.
Q4. What is the maximum weight allowed? 5 kilograms.
Q5. What is the tariff? ₹15 (upto 2000 g) and ₹22 (2001–5000 g) if booked at the delivery office. ₹20 and ₹35 respectively if booked at an identified parcel hub or parcel processing centre. GST extra.
Q6. How is postage calculated? On volumetric weight or gross weight, whichever is higher.
Q7. Are COD and insurance available? Yes, on payment of the applicable fee, as in India Post Parcel.
Q8. Which regulation was amended? Post Office Regulations, 2024, vide S.O. 4241 (E.) dated 31.07.2026, Gazette ID CG-DL-E-31072026-275011.
Q9. Is this circular useful for departmental exams? Yes. Circular-based questions are common in GDS to MTS, GDS to Postman, MTS to PA and Postman to PA departmental exams.
Disclaimer
This blog post is an easy-language summary of the official circular for information and exam-preparation purposes. For official use, always refer to the original circular issued by the Parcel Directorate, Department of Posts, and the related Gazette notification.