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

Input tax credit rules: electronic commerce operators cannot use ITC to discharge notified-supplier liabilities and must pay from cash ledger.

Where an electronic commerce operator is liable to pay tax as if it were the supplier of notified services supplied through its platform, it is not required to reverse input tax credit proportionately for inputs and input services used for such notified supplies. The input tax credit availed for such inputs and input services cannot be utilised to discharge the tax liability arising from the notified supplies, which must be paid through the electronic cash ledger. However, that credit may be used to discharge tax liabilities in respect of supplies made by the ECO on its own account.