GST on service supplied by restaurants through e-commerce operators

Clarification: As ‘restaurant service’ has been notified under section 9(5) of the CGST Act, 2017, the ECO
shall be liable to pay GST on restaurant services provided, with effect from the 1st January, 2022, through ECO. Accordingly, the ECOs will no longer be required to collect TCS and file GSTR 8 in respect of restaurant services on which it pays tax in terms of section 9(5).

On other goods or services supplied through ECO, which are not notified u/s 9(5), ECOs will continue to pay TCS in terms of section 52 of CGST Act, 2017 in the same manner at present.

Clarification: Yes. ECOs will be liable to pay GST on any restaurant service supplied through them
including by an unregistered person.

Clarification: It is clarified that the aggregate turnover of person supplying restaurant service through
ECOs shall be computed as defined in section 2(6) of the CGST Act, 2017 and shall include the aggregate value of supplies made by the restaurant through ECOs. Accordingly, for threshold consideration or any other purpose in the Act, the person providing restaurant service through ECO shall account such services in his aggregate turnover.

Clarification: No. ECOs are not the recipient of restaurant service supplied through them. Since these are
not input services to ECO, these are not to be reported as inward supply (liable to reverse charge).

Clarification: ECOs provide their own services as an electronic platform and an intermediary for which it would acquire inputs/input service on which ECOs avail input tax credit (ITC). The ECO charges commission/fee etc. for the services it provides. The ITC is utilised by ECO for payment of GST on services provided by ECO on its own account (say, to a restaurant). The situation in this regard remains unchanged
even after ECO is made liable to pay tax on restaurant service. ECO would be eligible to ITC as before. Accordingly, it is clarified that ECO shall not be required to reverse ITC on account of restaurant services on which it pays GST in terms of section 9(5) of the Act.

It may also be noted that on restaurant service, ECO shall pay the entire GST liability in cash (No ITC could be utilised for payment of GST on restaurant service supplied through ECO)

Clarification: No. As stated above, the liability of payment of tax by ECO as per section 9(5) shall be
discharged in cash.

Clarificatio: ECO is required to pay GST on services notified under section 9(5), besides the services/other supplies made on his own account.
On any supply that is not notified under section 9(5), that is supplied by a person through ECO, the liability to pay GST continues on such supplier and ECO shall continue to pay TCS on such supplies.
Thus, present dispensation continuesfor ECO, on supplies other than restaurant services. On such supplies (other than restaurant services made through ECO) GST will continue to be billed, collected and deposited in the same manner as is being done at present. ECO will deposit TCS on such supplies.

Clarification: Considering that liability to pay GST on supplies other than ‘restaurant service’ through
the ECO, and other compliances under the Act, including issuance of invoice to customer, continues to lie with the respective suppliers (and ECOs being liable only to collect tax at source (TCS) on such supplies), it is advisable that ECO raises separate bill on restaurant service in such cases where ECO provides other
supplies to a customer under the same order.

Clarification: The invoice in respect of restaurant service supplied through ECO under section 9(5) will
be issued by ECO.

Clarification: A number of other services are already notified under section 9(5). In respect of such services, ECO operators are presently paying GST by furnishing details in GSTR 3B.

The ECO may, on services notified under section 9 (5) of the CGST Act,2017, including on restaurant service provided through ECO,may continue to pay GST by furnishing the details in GSTR 3B, reporting them as outward taxable supplies for the time being.

Besides, ECO may also, for the time being, furnish the details of such supplies of restaurant services under section 9(5) in Table 7A(1) or Table 4A of GSTR-1, as the case may be, for accounting purposes.

Registered persons supplying restaurant services through ECOs under section 9(5) will report such supplies of restaurant services made through ECOs in Table 8 of GSTR-1 and Table 3.1 (c) of GSTR-3B, for the time being.