Proportional ITC reversal not required by Ecom operators who are liable to pay tax under RCM

The 55th GST council meeting held on 21st December 2024, inter-alia recommended to issue clarification regarding requirement of reversal of Input Tax Credit by electronic commerce operators in respect of supplies made under section 9(5) of CGST Act, 2017: The GST Council recommended that no proportional reversal of ITC under section 17 (1) or section 17 (2) of CGST Act, 2017 is required to be made by the ECO in respect of supplies for which they are required to pay tax under section 9(5) of CGST Act, 2017. The same has been given effect by way of a circular issued on 31.12.2024