This Tax Alert
summarizes a recent Circular [1] issued by the Central Board of
Indirect Taxes and Customs (CBIC). The Circular addresses various issues
relating to the liability of E-commerce operator (ECO) to pay GST on supply of
restaurant services made through it w.e.f. 1 January 2022.
The key clarifications are:
- As ECOs are already registered
as supplier of goods or services, there is no requirement to obtain
separate registration for payment of tax on restaurant service.
- ECO will be liable to issue
invoice and pay GST on any restaurant service supplied through it
including by an unregistered person.
- Aggregate turnover of
restaurant will include value of supply made through ECO for threshold
consideration or any other purpose.
- ECO is not required to reverse
input tax credit on account of restaurant services on which it pays tax.
Further, the tax liability needs to be discharged in cash only.
- On any supply other than
restaurant service, the liability to pay GST continues on the supplier and
ECO shall continue to collect tax at source on such supplies.
- ECO may also furnish the
details of restaurant supplies in Table 4A (registered customers) or Table
7A(1) (unregistered customers) of GSTR-1.
On the other hand, restaurant will report such supplies in Table 8 of GSTR-1
and Table 3.1(c) of GSTR-3B, for the time being. The said tables deal with nil
rated and exempt supply.
[1] Circular No.
167/23/2021-GST dated 17 December 2021
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