RESTAURANT sERVICE tAXABILITY

[YUWRAJ KOTHARI]

RESTAURANT service providers are not permitted to supply through e-commerce operator.But it is seen that restaurants supply through Zomato,Swiggy etc What could be the consequence. Is there any provision not to opt for 5% but pay full tax and claim ITC. Further these Restaurants also incur URD purchass of taxable goods.Are they supposed to pay tax on URDs under RCM without claim for ITC. Kindly clarify Thanks in advance.

[DEEPAK BANSAL]

Dear Sir,

GST on Restaurant service is 5% without ITC. This is not composition scheme. It is rate of GST of restaurant service. They are entitled to purchase from URDs. Further, RCM u/s 9(4) is totally substituted with new section to be notified.

AI Summary

Restaurant service taxability: GST at concessional rate without input tax credit; purchases from unregistered dealers permitted; RCM changes pending. Restaurant services attract GST at a concessional rate levied without entitlement to input tax credit; this is a specified rate and not a composition scheme. Restaurants may purchase from unregistered dealers, and the earlier reverse charge provision (RCM u/s 9(4)) has been substituted with a new provision to be notified.