This official Circular was issued by the Central Board of Indirect Taxes & Customs (CBIC) on 27 November 2025. It addresses the following matter: Clarification on taxability of transaction between related parties where recipient is eligible for full ITC.
Circulars issued under the Central Goods and Services Tax (CGST) Act, 2017 carry binding or clarificatory effect for the department and, in many cases, for assessees. Taxpayers and practitioners should review whether their current compliance positions need to be updated in light of the guidance provided here.
Vatsalya B & Co tracks these updates to ensure our clients remain informed and compliant. If this update is relevant to your business operations, get in touch with our team for a personalised assessment.