GST on Restaurant Services, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ is running a standalone restaurant (Non – AC). He is serving food in the restaurant as well as through E – Commerce operator such as Zomato etc. Can XYZ claim the threshold exemption of ₹ 20 Lacs?

Posts / Replies

[KASTURI SETHI]

In my view, NO.

[Shilpi Jain]

Compulsory registration under section 24 is applicable only when the supply is made through an e commerce operator who is required to collect tax at source under section 52. In this case if the E-Commerce operator is not required to collect tax at source then the restaurant can still avail the threshold limit

[KASTURI SETHI]

I clarify my reply as under :-

In case E-Commerce Operator falls under the category of compulsory registration, the issue of threshold limit for registration in respect of restaurant services becomes meaningless/redundant. In other words, in this hypothetical situation, the question of separate threshold exemption for registration purpose does not arise.

In case E-Commerce Operator does not fall under the category of compulsory registration as pointed out by Madam Shilpi Jain, then threshold exemption of ₹ 20 lakhs for both services is admissible. Thus I concur with the views of Madam Shilpi Jain.

Thanks to Madam Shilpi Jain for throwing more light on the issue..