The Central Board of Indirect Taxes and Customs (CBIC) on December 31, 2024, issued the clarification in respect of input tax credit availed by electronic commerce operators where services specified under Section 9(5) of the Central Goods and Services Tax Act, 2017 are supplied through their platform.
The following has been stated namely: -
• It clarifies that Electronic Commerce Operators (ECOs) paying tax under Section 9(5) of the CGST Act are not required to proportionately reverse input tax credit (ITC) on their inputs and input services.
• However, tax liability under Section 9(5) shall be paid entirely in cash, and ITC cannot be used for this liability but can be utilized for other taxable supplies made on their own account. This ensures consistency in tax treatment for specified services under Section 9(5).
Detailed notification is attached below.
[Notification no. - 240/34/2024-GST]
