GST ITC Rules for E-Commerce Platforms under Section 9(5)

Last updated: 02 January 2025

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This notification clarifies the rules regarding input tax credit (ITC) for e-commerce operators (ECOs) who facilitate the supply of services specified under Section 9(5) of the CGST Act, 2017. It confirms that ECOs are not required to reverse their ITC when restaurant services, which fall under Section 9(5), are supplied via their platforms. This builds upon previous clarifications issued in December 2021.

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 31st 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 TaxAct, 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))

Official copy of the circular has been attached

FAQ :

This notification provides a clarification on input tax credit (ITC) for e-commerce operators (ECOs) concerning services notified under Section 9(5) of the CGST Act, 2017.

No, e-commerce operators are not required to reverse their input tax credit (ITC) in respect of the supply of restaurant services through their platform, as these are notified services under Section 9(5).

Section 9(5) of the CGST Act, 2017, specifies certain services for which the liability to pay tax is on the e-commerce operator rather than the supplier.

No, this notification serves as a clarification and refers to a previous circular (Circular No. 167/23/2021 – GST dated 17.12.2021) that already clarified this position regarding ITC for notified services.

Notification No : Circular No. 240/34/2024-GST
Source : https://taxinformation.cbic.gov.in/view-pdf/1003254/ENG/Circulars

Attached File : 322600_11413_circular_no_240_2024.pdf

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