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Type of Document: Circular
Notification Date: 31 December 2024
Relevant Act(s)/Rule(s): Central Goods and Services Tax Act, 2017, Central Goods and Services Tax Rules, 2017
Circular No.: 240/34/2024-GST
This circular provides clarifications for electronic commerce operators (ECOs) liable to pay tax under Section 9(5) of the CGST Act for specified services.
ECOs supply two types of services:
(i) notified services under Section 9(5), and
(ii) their own platform services.
ECOs can avail ITC on inputs and input services used to facilitate platform services. However, they are not required to reverse ITC proportionately under Section 17(1) or 17(2) for supplies under Section 9(5). Tax liability for such supplies must be paid entirely in cash and cannot be offset using ITC. The ITC availed for inputs and input services may only be used for discharging tax liability for their own services. This clarification extends principles outlined in Circular No. 167/23/2021 to other notified services under Section 9(5).
Notification Link: https://taxinformation.cbic.gov.in/view-pdf/1003254/ENG/Circulars
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