GST Circular 167/2021 | Clarification regarding tax on supplies of restaurant services supplied via ecommerce operators

GST Circular No 167/2021

Clarification regarding tax on supplies of restaurant service supplied through ecommerce operators (ECOs) under section 9(5) of the CGST Act, 2017

1. No longer be required to collect TCS
2. No mandatory requirement of taking separate registration if already registered
3. If services provided to unregistered person then also GST needs to be paid
4. Not to be recorded as inward supply (liable to reverse charge) in GSTR 3B of ECOs
5. ECO cannot utilize its Input Tax Credit to pay tax
6. If ‘restaurant service’ and other than restaurant service sold by a restaurant to a customer under the same order, advisable to ECOs raise a seprate bill in such case for resturant service.

7. Invoice will be issued by ECO for resturant service
8. In GSTR 3B of ECOs restaurant service reporting as outward taxable supplies for the time being.
Besides, ECO may also, for the time being report as restaurant service – Table
7A(1) for unregistered or Table 4A for registered recipient of GSTR-1, as the case
maybe, for accounting purpose.
9. Registered persons supplying restaurant services through ECOs under section 9(5) will report such supplies of restaurant services made through ECOs in Table of GSTR-1 and Table 3.1 (c) of GSTR-3B, for the time being.

Mandeep Kulkarni

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