Food and beverages thru aggreator
This query is : Resolved
Quick Summary
03 October 2025
If sales / business happens thru various aggregator and in turn on the aggregator provides discounts on their platform. GST Liability does this apply to whom and process involved
03 October 2025
GST Liability on Sales Through Aggregators
When a business sells goods or services through an aggregator (e-commerce operator platform), the supplier (business) is generally liable to pay GST on the supply. The aggregator facilitates the sale but is not the supplier unless it is selling its own goods/services.
Certain notified services supplied through e-commerce operators attract GST liability directly on the e-commerce operator under Section 9(5) of CGST Act, such as passenger transport services and restaurant services.
The e-commerce operator (aggregator) is required to collect tax at source (TCS) at 1% on the net value of taxable supplies made through it and deposit it with the government. This applies only when the consideration is collected by the operator.
In cases where multiple e-commerce operators are involved in a transaction, the liability to collect TCS lies on the operator releasing payment to the supplier.
GST on Discounts Offered on Aggregator Platforms.
When a business sells goods or services through an aggregator (e-commerce operator platform), the supplier (business) is generally liable to pay GST on the supply. The aggregator facilitates the sale but is not the supplier unless it is selling its own goods/services.
Certain notified services supplied through e-commerce operators attract GST liability directly on the e-commerce operator under Section 9(5) of CGST Act, such as passenger transport services and restaurant services.
The e-commerce operator (aggregator) is required to collect tax at source (TCS) at 1% on the net value of taxable supplies made through it and deposit it with the government. This applies only when the consideration is collected by the operator.
In cases where multiple e-commerce operators are involved in a transaction, the liability to collect TCS lies on the operator releasing payment to the supplier.
GST on Discounts Offered on Aggregator Platforms.
03 October 2025
GST on Discounts Offered on Aggregator Platforms
Discounts given by the aggregator or supplier impact the transaction value on which GST is calculated.
Discounts given before or at the time of sale can be deducted from the transaction value and GST is calculated on the net amount after discount.
Discounts provided post-sale or as incentives from the supplier to the aggregator or dealers (to pass on to customers) are treated as additional consideration and are taxable under GST. The dealer or aggregator would charge GST on the amount of discount received.
If the aggregator gives additional discounts to customers on its platform, the transaction value for GST purposes is the amount actually received after discount.
Discounts given by the aggregator or supplier impact the transaction value on which GST is calculated.
Discounts given before or at the time of sale can be deducted from the transaction value and GST is calculated on the net amount after discount.
Discounts provided post-sale or as incentives from the supplier to the aggregator or dealers (to pass on to customers) are treated as additional consideration and are taxable under GST. The dealer or aggregator would charge GST on the amount of discount received.
If the aggregator gives additional discounts to customers on its platform, the transaction value for GST purposes is the amount actually received after discount.
03 October 2025
Supplier must charge GST on the value of goods or services sold through the aggregator platform.
Aggregator collects tax at source (TCS) at 1% on net value of taxable supplies (if applicable) and deposits with government.
Discounts given before sale reduce transaction value; hence GST is charged on reduced value.
Post-sale discounts or incentives to be passed on are charged GST as additional consideration.
The supplier, dealer, or aggregator declares GST on the value after considering discounts in GST returns.
Input Tax Credit (ITC) can be claimed by registered persons based on GST paid on actual transaction value.
Aggregator collects tax at source (TCS) at 1% on net value of taxable supplies (if applicable) and deposits with government.
Discounts given before sale reduce transaction value; hence GST is charged on reduced value.
Post-sale discounts or incentives to be passed on are charged GST as additional consideration.
The supplier, dealer, or aggregator declares GST on the value after considering discounts in GST returns.
Input Tax Credit (ITC) can be claimed by registered persons based on GST paid on actual transaction value.
03 October 2025
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