TaxTMI 
TaxTMI 
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?
Supply through E - Commerce
15 Feb 2022 
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GST liability on e commerce restaurant services shifts to the e commerce operator, impacting restaurants' GST charging obligations.
Circular No.167/23/2021 GST allocates GST liability for notified restaurant services supplied through e commerce to the e commerce operator, requiring restaurants to issue a bill of supply without charging GST; ECOs paying tax on such supplies are exempted from collecting TCS and filing GSTR 8 for those supplies, though commentators dispute whether such supplies remain taxable rather than exempt and caution that circulars must be tested against statutory law. (AI Summary)
Circular No.167/23/2021 GST allocates GST liability for notified restaurant services supplied through e commerce to the e commerce operator, requiring restaurants to issue a bill of supply without charging GST; ECOs paying tax on such supplies are exempted from collecting TCS and filing GSTR 8 for those supplies, though commentators dispute whether such supplies remain taxable rather than exempt and caution that circulars must be tested against statutory law. (AI Summary)