Supply of Restaurant Services via E-Commerce Operator liability to pay GST w.e.f. 01.01.2022

Supply of Restaurant Services via E-Commerce Operator liability to pay GST w.e.f. 01.01.2022

E-Commerce Operators will be responsible to pay Goods and Services Tax on any restaurant service supplied via them, including by an unregistered person. Because there is no exemption for the supply of restaurant services by unregistered business entities,

IMPACT OF CHANGES ON E-COMMERCE OPERATORS AND THEIR LIABILITY TO PAY GST ON RESTAURANT SERVICES W.E.F  1^st Jan 2022

• E-Commerce Operators is now made liable to pay GST on "restaurant services" provided through the e-commerce platform.
• Above change is not applicable for restaurant services provided from a premise with declared tariff of Rs. 7,500/- or above per day.
• E-Commerce Operators gst payment liability provisions shall be effective from January 01,2022.
• E-Commerce Operators like Zomato, Swiggy etc is qualify as an "e-commerce operator" u/s 2(45) of CGST Act, 2017.
• CBEC Notification read with Section 9(5) of CGST Act, 2017, Swiggy, Zomato will be responsible to pay GST on restaurant services provided through it's website/app from January 01, 2022.

What is Non-Restaurant & Hybrid Model.

• Stand-alone ice cream parlors, bakery shops, sweet shops who is not supplying restaurant services. Restaurants in hotel where declared tariff is more than Rs. 7500.
• Suppliers covers under forward charge and E-Commerce Operators is responsible to deduct and pay TCS @1%.
• HYBRID MODEL: Supplier is involved in providing restaurant and Non-Restaurant services.
• Bifurcation of above is require so that restaurant services GST is collected and paid by E-Commerce Operators & Non-Restaurant is collected and paid by such supplier.

GST Rates for Restaurant Services

There is a lot of variation in the GST rate from what was present before change in GST tax policy. Following is a details of the changed in the GST Rates to make clarity under GST on restaurant services:

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