Download Document

Page 1 of 4

Circular No. 240/34/2024-GST
F. No. CBIC-20001/14/2024-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

North Block, New Delhi,
Dated the 31
st
December, 2024
To,
The Principal Chief Commissioners/ Chief Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam / Sir,
Sub: Clarification in respect of input tax credit availed by electronic commerce
operators where services specified under Section 9(5) of Central Goods and
Services Tax Act, 2017 are supplied through their platform -reg.

Reference is invited to Circular No. 167/23/2021 – GST dated 17.12.2021 which
clarified that electronic commerce operators (hereinafter referred to as “ECOs”) required to
pay tax under section 9(5) of the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as “CGST Act”) are not required to reverse input tax credit (ITC) in respect of
supply of restaurant services through their platform (notified services under section 9(5)). In
this regard, representations have been received seeking clarification regarding requirement of
reversal of ITC, if any, in respect of supply of services, other than restaurant services, under
section 9(5) of CGST Act.
2.
The issue has been examined and to ensure uniformity in the implementation of the
law across the field formations, the Board, in exercise of its powers conferred under section
168(1) of the CGST Act, hereby clarifies the issue as below
:

Page 2 of 4

S. No

Issue

Clarification

1. Whether electronic
commerce operator, required
to pay tax under section 9(5)
of CGST Act, is liable to
reverse proportionate input
tax credit on his inputs and
input services to the extent of
supplies made under section
9(5) of the CGST Act.
1. ECO, required to pay tax under section
9(5) of CGST Act, is making supplies
under two counts:
i. Supplies notified under section
9(5) of CGST Act for which he
is liable to pay tax as if he is
the supplier of the said
services.
ii. Supply of his own services by
providing his electronic
platform for which he charges
platform fee /commission etc.
from the platform users.
2. For providing the services mentioned
at 1(ii) above, the ECO procures inputs
as well as input services for which he
avails Input Tax Credit.
3. It has been clarified vide question no.
6 of Circular No. 167/23/2021 – GST
dated 17.12.2021 that the ECO shall
not be required to reverse input tax
credit on account of restaurant services
on which he pays tax under section
9(5) of the CGST Act. It has also been
clarified that the input tax credit will
not be allowed to be utilized for
payment of tax liability under section
9(5) and whole of the tax liability
under section 9(5) will be required to
be paid in cash.
4. The principle, which has been outlined
in question no. 6 of Circular No.

Page 3 of 4


3. It is requested that suitable trade notices may be issued to publicize the contents of
this Circular.

167/23/2021 – GST dated 17.12.2021,
also applies to the supplies made in
respect of other services specified
under section 9(5) of CGST Act.
5. In view of this, it is clarified that
Electronic Commerce Operator, who is
liable to pay tax under section 9(5) of
the CGST Act in respect of specified
services, is not required to reverse the
input tax credit on his inputs and input
services proportionately under section
17(1) or section 17(2) of CGST Act to
the extent of supplies made under
section 9(5) of the CGST Act.
6.
It is further clarified that ECO will be
required to pay the full tax liability on
account of supplies under section 9(5)
of the CGST Act only through
electronic cash ledger. The credit
availed by him in relation to the inputs
and input services used to facilitate
such supplies cannot be used for
discharge of such tax liability under
section 9(5) of the CGST Act.
However, such credit can be utilized
by him for discharge of tax liability in
respect of supply of services on his
own account.

Page 4 of 4

4. Difficulty, if any, in implementation of this Circular may be brought to the notice of
the Board. Hindi version would follow.


(Sanjay Mangal)
Principal Commissioner (GST)