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February 23, 2023
By
Prerna

GST on Restaurant Services through Zomato, Swiggy, etc. Reporting in GSTR-3B

Restaurants that partner with online food delivery platforms like Zomato and Swiggy to offer their services often find themselves in a tricky GST situation. These platforms act as intermediaries between the restaurant and the customer, and it's not always clear who is responsible for paying GST on the services provided. In this article, we'll explore the various scenarios and how to report them in GSTR-3B.

Scenario 1: Restaurant provides services directly to the customer

If a customer orders food directly from a restaurant and picks it up, the restaurant is responsible for charging and paying GST on the services provided. This is because the restaurant is providing the services directly to the customer and there is no intermediary involved.

Scenario 2: Online food delivery platform acts as an intermediary

When a customer orders food from a restaurant through an online food delivery platform like Zomato or Swiggy, the platform acts as an intermediary. In this scenario, the restaurant is responsible for charging and paying GST on the services provided. This is because the restaurant is providing the services to the platform, who then provides it to the customer.

Scenario 3: Online food delivery platform provides services on behalf of the restaurant

In some cases, the online food delivery platform may provide services on behalf of the restaurant. For example, if the platform offers delivery services for the restaurant, the platform is responsible for charging and paying GST on the delivery services provided. The restaurant is responsible for charging and paying GST on the food services provided.

Reporting GST on restaurant services through online food delivery platforms in GSTR-3B

Now that we've explored the various scenarios for GST on restaurant services through online food delivery platforms, let's take a look at how to report them in GSTR-3B.

If the restaurant is responsible for charging and paying GST on the services provided, they must report it in their GSTR-3B form. The GST charged on the services provided should be reported under the "Outward taxable supplies" section of the form. The restaurant must also report the GST paid on their input supplies (e.g. ingredients) under the "Input tax credit" section of the form.

If the online food delivery platform is responsible for charging and paying GST on the services provided (e.g. delivery services), they must report it in their GSTR-3B form. The GST charged on the services provided should be reported under the "Outward taxable supplies" section of the form. The platform must also report the GST paid on their input supplies (e.g. fuel for delivery) under the "Input tax credit" section of the form.

Conclusion

Knowing how to handle GST on restaurant services through online food delivery platforms can be tricky, but it's important for restaurants to get it right to avoid any compliance issues. By following the scenarios outlined in this article and reporting correctly in GSTR-3B, restaurants can ensure they are complying with GST regulations.

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