Supply through E - Commerce

[Kaustubh Karandikar]

When restaurant supply is through e -commerce (ECO), the restaurant will issue Bill of Supply without charging GST to ECO. This will be treated as ‘Nil’ rated, ‘Exempted’, ‘Non – GST’ or any other category of supply?

AI Summary

Debate on GST Responsibilities for E-commerce Platforms Supplying Restaurant Services under Section 9(5) from January 2022. A discussion on the Goods and Services Tax (GST) implications for restaurant supplies through e-commerce platforms (ECO) was initiated. One participant referenced a circular stating that from January 1, 2022, ECOs are responsible for paying GST on restaurant services, making such supplies exempt for the restaurant itself. Another participant argued that these supplies remain taxable since GST is paid under section 9(5), and emphasized that circulars should be scrutinized against the law, as they often lack legal backing and may reflect a revenue bias.