Clarification issued regarding modalities of compliance in respect of supply of “Restaurant Service” through E-Commerce Operators w.e.f 01.01.2022, which is as follows:
– E-commerce Operators will no longer be required to collect TCS and file GSTR-8 in respect of ‘restaurant services’ on which it pays tax under section 9(5) of the CGST Act, 2017, but will continue to collect TCS and file GSTR-8 for other services.
– As E-Commerce Operators are registered in accordance with rule 8 of the CGST Rules, 2017 and there would be no mandatory requirement of taking separate registration by ECOs for payment of tax on restaurant service.
– E-Commerce Operators will be liable to pay GST on restaurant service supplied through them including by an un-registered person.
– 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 E-Commerce Operators.
– E-Commerce Operators 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.
– E-Commerce Operators shall pay the entire GST liability in cash on restaurant service (No ITC could be utilized for payment of GST on restaurant service supplied through E-Commerce Operators).
– Registered persons supplying restaurant services through E-Commerce Operators under section 9(5) will report such supplies in Table 8 of GSTR-1 and Table 3.1 (c) of GSTR-3B, for the time being.