Important points of the Restaurant Service under section 9(5)

CA Gaganmeet Singh

3 years ago

Important points of the Restaurant Service under section 9(5) of the CGST Act, 2017 are as follows:

Who is liable to pay the tax on supplies of restaurant service supplied through ecommerce operators?
E-commerce operator. Relevant Notification No. 17/2021 dated 18.11.2021.
Effective Date?
1^st January, 2022
Would ECOs have to still collect TCS?
ECOs will no longer be required to collect TCS and file GSTR 8 in respect of restaurant services on which it pays tax in terms of section 9(5). On other goods or services supplied through ECO, which are not notified u/s 9(5), ECOs will continue to pay TCS in terms of section 52 of CGST Act, 2017 in the same manner at present.
Would ECOs have to mandatorily take a separate registration w.r.t supply of restaurant service [notified under 9(5)] through them even though they are registered to pay GST on services on their own account?
No mandatory requirement of taking separate registration by ECOs
Would the ECOs be liable to pay tax on supply of restaurant service made by unregistered business entities?
Yes
What would be the aggregate turnover of person supplying ‘restaurant service’ through ECOs?
Aggregate turnover include the aggregate value of supplies made by the restaurant through ECOs.
Can the supplies of restaurant service made through ECOs be recorded as inward supply of ECOs (liable to reverse charge) in GSTR 3B?
No, these are not input services to ECO
Would ECOs be liable to reverse proportional input tax credit on his input goods and services for the reason that input tax credit is not admissible on ‘restaurant service’?
ECO shall not be required to reverse ITC on account of restaurant services. For Detailed Analysis: Youtube link
Can ECO utilize its Input Tax Credit to pay tax w.r.t ‘restaurant service’ supplied through the ECO?
No
Would supply of goods or services other than ‘restaurant service’ through ECOs be taxed at 5% without ITC?
On such supplies GST will continue to be billed, collected and deposited in the same manner as is being done at present. ECO will deposit TCS on such supplies.
Would ‘restaurant service’ and goods or services other than restaurant service sold by a restaurant to a customer under the same order be billed differently? Who shall be liable for raising invoices in such cases?
It is advisable that ECO raises separate bill on restaurant service in such cases where ECO provides other supplies to a customer under the same order.
Who will issue invoice in respect of restaurant service supplied through ECO – whether by the restaurant or by the ECO?
ECO
Clarification may be issued as regard reporting of restaurant services, value and tax liability etc in the GST return.
Registered persons supplying restaurant services through ECOs under section 9(5) will report such supplies of restaurant services made through ECOs in Table of GSTR-1 and Table 3.1 (c) of GSTR-3B, for the time being.