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 Rate on Sweet Shop Deliveries via Zomato/Swiggy: Classified as Shop Sales, Not Restaurant Services. An individual operating a sweet shop and restaurant inquires about the applicable Goods and Services Tax (GST) rate for items sold through platforms like Zomato or Swiggy, or delivered by the shop itself. The question is whether these should be taxed as restaurant services or shop sales. Respondents agree that such deliveries should be treated as shop sales, as there is no service element involved. One response highlights the distinction between taxation and accounting in e-commerce transactions.