Sale through E - Commerce

[Kaustubh Karandikar]

XYZ(Proprietor) having a sweet shop and from the same premises he is also providing restaurant services. Items sold on shop counter, the GST rate charged is the rate applicable to that product and item sold from restaurant, GST @ 5% is charged. Certain items which are sold from shop counter are also sold through Zomato, Swiggy etc. or is given as home delivery by the shop themselves. The GST rate for such deliveries will be treated as restaurant service or shop sale?

[Rajagopalan Ranganathan]

Sir,

In my opinion it will be treated as shop sales.

[Ganeshan Kalyani]

I agree with the views of Sri Rajagopalan Sir.

[Shilpi Jain]

There is no service element involved in the delivery of the food from the shop. It should be treated as sale of goods only.

[YAGAY andSUN]

Taxation and accounting of sales transactions are totally different in E-Commerce Transactions.

AI Summary

GST classification for food deliveries treated as shop sales rather than restaurant services for platform or home delivery. Supplies of food items delivered from a retail shop through third party platforms or by the shop itself lack the service element of restaurant service and should be classified for GST purposes as sale of goods; e commerce transactions however present separate taxation and accounting considerations that depend on transaction mechanics and invoicing.