Composition scheme for Restaurants delivering through swiggy

[Neer Maru]

As per section 10(2)(d) of CGST Act, 2017, registered persons supplying services through e-commerce operators which are required to collect TCS under section 52 are not eligible for composition scheme.

As per explanation to section 52(1), value of supply under section 9(5) is excluded for purpose of TCS as the liability of the original supplier is shifted on the e-commerce operator.

So does this mean that swiggy is an 'e-commerce operator which is NOT required to collect TCS under section 52' and hence restaurants can opt for composition scheme or are they still ineligible to do so as swiggy is an e-commerce operator registered for TCS for services other than those under 9(5)

Expert views needed.

AI Summary

Composition scheme eligibility: restaurants supplying food via an e commerce platform remain eligible where the platform does not collect TCS.
Restaurants supplying food through an e commerce platform remain eligible for the composition scheme because the platform is not required to collect TCS on those food service supplies under the TCS exclusion for operator services; however, eligibility can be lost if the restaurant makes other supplies via the platform that attract platform collected TCS or if the supplies are otherwise subject to TCS/RCM, and practical reporting of such turnover in the composition return may require further clarification.