GST: The CBIC has clarified that ECOs which are to liable to pay tax u/s 9(5) of CGST Act are not required to proportionately reverse ITC on inputs and input services, for supplies of restaurant & other services, covered u/s 9(5). However, the ECOs must pay tax liability under section 9(5) fully via cash ledger but they can use ITC for tax on services supplied on their own account.(02.01.2025)

Daily Updates / By

GST:

The CBIC has clarified that ECOs which are to liable to pay tax u/s 9(5) of CGST Act are not required to proportionately reverse ITC on inputs and input services, for supplies of restaurant & other services, covered u/s 9(5). However, the ECOs must pay tax liability under section 9(5) fully via cash ledger but they can use ITC for tax on services supplied on their own account.

[Circular No. 240/34/2024-GST dated 31.12.2024]