The Department of Goods and Service Tax, Govt. of Maharashtra on January 21, 2025, 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 MGST 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. ITC cannot be used for this liability but for other taxable supplies on their account. This ensures consistency in tax treatment for specified services under Section 9(5).
Detailed notification is attached below.
[Circular no. - 03T of 2025]
