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GST INPUT

RONIT (CA CS BCOM) (194 Points)

03 December 2018

We supply food through our kitchen services via Zomato,swiggy,food panda and they are charging commission and gst from us can I get the input of these gst charged by them ??

COMM CHARGED = 20%
GST CHARGED = 18 %

WILL I GET THE INPUT IF REGISTERED AS REGULAR TAX PAYER

THANX IN ADVANCE KINDLY ADVISE

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14 Replies

CA Ankur Mehan (119 Points)
Replied 03 December 2018

NO.

As u r supplying food business GST rate is 5% without ITC( considering restaurant service). As u are not allowed to take any credit hance not allowed

pritesh (CA Final student) (7101 Points)
Replied 03 December 2018

wheather you are collecting 5% or 18% on your restaurant service from your customer?

RONIT (CA CS BCOM) (194 Points)
Replied 03 December 2018

what about Zomato and swiggy charging 18% as gst on 20% commission ??? what abt this itc will I get

CA Ankur Mehan (119 Points)
Replied 03 December 2018

Invalid question... there is only one rate for restaurant service i.e 5%

RONIT (CA CS BCOM) (194 Points)
Replied 03 December 2018

ca Ankur ji I don't run a restaurant it's a kitchen service only that also through online delivery partner

Pritesh ji rates are fixed as per menu and I only supply the food through swiggy and Zomato at rate prescribed.so what should I do kindly suggest for itc

CA Ankur Mehan (119 Points)
Replied 03 December 2018

How can u take credit. as u r given special rate i.e 5% with the condition (NO ITC ) . that means u only charge 5 % from ur customers and without any adjustment pay that to the government.

pritesh (CA Final student) (7101 Points)
Replied 03 December 2018

agreed with CA Ankur ji

Ruchira (Article) (208 Points)
Replied 03 December 2018

The GST council in its 23rd meeting has slashed down Tax rate from 18% to 5% for restaurants and they won't be eligible for the benefit of Input Tax Credit. Thus, you won't be able to claim ITC of GST that you pay to Swiggy, Food Panda and Zomato.

RONIT (CA CS BCOM) (194 Points)
Replied 03 December 2018

sir mine main question is what about gst on commission that they are charging ?

on 1000 rs they are charging 200 and on 200 they are charging 18% i.e 36 Rs

need advise for these 36 Rs

CA Ankur Mehan (119 Points)
Replied 03 December 2018

That will be consider Outdoor Catering chargeble @ 18%.....
Now few ques arise.

1. r u charging GST?

2. whats ur turnover?

But yes u can claim ITC. But ITC is claim only against Output liability. If u dont have any liability then go for refund

RONIT (CA CS BCOM) (194 Points)
Replied 03 December 2018

1...Still not charging GST

2...Turnover less than yearly

still no liability to pay as not selling foods in any manner i.e dinein or takeaway

only medium of selling is through online

in that case can i claim itc sir ?on gst charged over comm ?

RAHUL (Student CA Final ) (377 Points)
Replied 04 December 2018

If the tax on the final bill is at the rate of 5% then you can't claim input, because that will be composition scheme. Otherwise if the rate on the final bill is 18% then you can claim.

CA Ankur Mehan (119 Points)
Replied 04 December 2018

Ronit sir thats what m saying, u r not collecting GST.

1. So u have to pay GST out of ur pocket.

2. If u pay 5% then u can not claim ITC, if u charge 18% u can. but its ur decision to choose rate.

my number is 9888694510(wats app) for any further assistance..

Sunil Sharma (CMA & CS) (584 Points)
Replied 04 January 2019

Ronit ,

Kindly check out with the Different rates as mentioned below

Type of Restaurants	GST Rate
Stand Alone Restaurants	5% no ITC
Restaurants forming part of Hotels where the declared tariff of the accommodation does not exceed Rs 7500	5% no ITC
Restaurants forming part of Hotels where the declared tariff of the accommodation exceeds Rs 7500	18% with ITC
Regular Catering at say Company premises	5% no ITC
Outdoor catering	18% with ITC

Being your case as a Cloud Kitchen falls under the Outdoor catering hence GST would be @ 18% and Yes , you can claim ITC for the Commission invoices raised by Zomato and Swiggy.

Sunil Sharma