GST on Restaurant Services

[Kaustubh Karandikar]

XYZ is running a standalone restaurant (Non – AC). He is serving food in the restaurant as well as through E – Commerce operator such as Zomato etc. Can XYZ claim the threshold exemption of ₹ 20 Lacs?

AI Summary

GST Threshold Exemption for Non-AC Restaurants: Clarification on Section 24 and Section 52 Application for E-commerce Sales A discussion was held regarding the applicability of the Goods and Services Tax (GST) threshold exemption of 20 lakhs for a standalone non-AC restaurant, XYZ, serving food both in-house and through e-commerce platforms like Zomato. Kasturi Sethi initially opined that the exemption is not applicable. Shilpi Jain clarified that compulsory registration under Section 24 applies only if the e-commerce operator is required to collect tax at source under Section 52. If not, the restaurant can avail the threshold limit. Kasturi Sethi later agreed with Shilpi Jain's interpretation, acknowledging the conditions under which the exemption is applicable.