Of course it's literal...But it's spiritual, not physical...
Funny that his followers took it literally...”how can we accept this...it is a hard teaching”. So they left...Jesus let them leave, and did not “clarify” his teaching...he merely turned to his apostles and asked...”will you leave me too?”
Jesus said to them again, Peace be with you. As the Father has sent me, even so I send you. And when he had said this, he breathed on them, and said to them, Receive the Holy Spirit. If you forgive the sins of any, they are forgiven; if you retain the sins of any, they are retained.