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Published on:
February 20, 2023
By
Paramita

How to File GST Returns in Case of Restaurant Services through Eco Under Sec 9(5)

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. GST has replaced many indirect taxes previously levied by the central and state government.

Restaurant services are considered as "supply of services" under GST. In this article, we will discuss how to file GST returns in case of restaurant services through Eco under Sec 9(5) in India.

What is GST?

GST is a consumption-based tax, which means that it is levied on the goods and services that are consumed. It is an indirect tax, which means that the tax is collected by intermediaries rather than directly from the customer. GST is a value-added tax, which means that it is levied on the value added at each stage of production or distribution.

GST has replaced many indirect taxes previously levied by the central and state governments, such as excise duty, service tax, VAT, and entertainment tax. GST is a single tax system that has brought uniformity in the tax structure across the country.

What is Eco under Sec 9(5)?

Electronic Commerce Operator (ECO) under Sec 9(5) refers to any person who owns, operates or manages a digital or electronic platform for facilitating the supply of goods and services.

In the case of restaurant services, the ECO is the digital or electronic platform through which the restaurant services are provided, such as Zomato, Swiggy, Uber Eats, and so on.

How to File GST Returns in Case of Restaurant Services through Eco Under Sec 9(5)?

If you are a restaurant owner who provides services through an ECO, you need to follow the below steps to file your GST returns:

Step 1: Obtain GST Registration

The first step is to obtain GST registration. If you are a restaurant owner who provides services through an ECO, you need to register under GST and obtain a GSTIN (GST Identification Number).

Step 2: File Monthly Returns

Once you have obtained GST registration, you need to file your GST returns on a monthly basis. The GST returns include GSTR-1, GSTR-2A, and GSTR-3B.

GSTR-1 is the return for the outward supplies made during the month. GSTR-2A is the return for the inward supplies received during the month, and GSTR-3B is the summary return for the month.

You need to file GSTR-1 and GSTR-2A through the ECO, and GSTR-3B through the GST portal.

Step 3: Pay GST

After filing your GST returns, you need to pay the GST liability. The GST liability is the difference between the GST collected from the customers and the GST paid on the input goods and services.

You can pay the GST liability through the GST portal or the ECO.

Step 4: Maintain Records

You need to maintain the following records:

  • Invoice-wise details of the outward supplies made through the ECO
  • Invoice-wise details of the inward supplies received through the ECO
  • Details of the taxes collected and paid through the ECO

Step 5: Reconcile Your Accounts

You need to reconcile your accounts on a monthly basis. You need to reconcile the following:

  • The outward supplies made through the ECO with the GSTR-1 return filed through the ECO
  • The inward supplies received through the ECO with the GSTR-2A return filed through the ECO
  • The tax collected through the ECO with the tax paid through the ECO

Conclusion:

Filing GST returns for restaurant services through ECO under Sec 9(5) is crucial for restaurant owners in India. By following the above steps, restaurant owners can ensure that they file their GST returns correctly and avoid any penalties or fines.

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