The GST Council notified the e-Commerce Operators (ECO) to pay GST on restaurant services instead of the supplier from 1st January 2022.

The Central Board of Indirect Taxes vide Notification No. 17/2021 added restaurant services and cloud kitchens under the scope of section 9(5) of the CGST Act, 2017. As per this section, the e-commerce operators will be liable to pay GST at 5% on restaurant services supplied through it. So, now online food delivery applications will have to pay GST. This notification does not cover restaurant services provided at specified premises.

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 according to the circular No. 167/23/2021 – GST.

A registered person making supplies through an Electronic Commerce Operator (ECO) shall not include in 3.1(a) above, the supplies on which the ECO is required to pay tax under sub-section (5) of section 9 of the Central Goods and Services Tax Act, 2017 and shall report such supplies in 3.1.1(ii) above according to the recent NOTIFICATION No. 14/2022 – Central Tax.

But here one main point to be noted is, Still In GSTR 1 there is no new field to show supplies of restaurant services made through ECOs, we have still to show in Table 8 of GSTR-1, due to this such values automatically its reflected in Table 3.1 (c) of GSTR-3B, but according to the recent notification supplies of restaurant services made through ECOs shall report in 3.1.1(ii).

To avoid such confusion for the time being have to delete such values in Table 3.1 (C) of GSTR 3B and have to report the same thing in 3.1.1(ii).

In this article Mainly focused on Supply of restaurant services through ECO & how restaurants will file GST Returns.

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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Qualification: CA in Practice
Company: N J NATH & ASSOCIATES
Location: Hyderabad, Telangana, India
Member Since: 28 Sep 2022 | Total Posts: 2
Chartered Accountant & Cost Accountant having experience of 5 years - Direct taxation & GST. View Full Profile

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