Gst payable on online food sale through Swiggy

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This query is : Resolved

Quick Summary

This discussion clarifies GST obligations for restaurants selling food online through platforms like Swiggy and Zomato. It explains that GST must be paid on the total gross sales value, not the net amount received after platform deductions. The guide also provides detailed accounting entries for Tally, covering how to record sales and reconcile payments received from these food delivery services.

Keyur

Keyur (Querist)

04 July 2025 Sir/Madam

Can you clarify and explain on gst payable on Restaurant service provide through Swiggy and Zometo??

1) total gross receipts in fy 24-25 of Rs 40 lacs our of swiggy and Zometo sales (online orders) of Rs. 12 lacs and payment received online after net of Gst and Tds. Can we have to pay gst on 40 lacs or Rs.28 lacs?

2) Which accounting entries are to be passed in tally’s books every week or months??

3) Which accounting entries are to be passed in tally’s books based on weekly statement received from Swiggy and Zometo?

Thanks in advance

Keyur

Keyur (Querist)

16 July 2025 Awaiting guidance from someone

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

12 August 2025 Here's a detailed explanation regarding GST on restaurant services provided through online platforms like Swiggy and Zomato, along with the accounting treatment:

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### 1) GST Payable on Total Sales vs. Net of GST and TDS

* **Gross Receipts:** Rs. 40 lakhs (including Rs. 12 lakhs from Swiggy/Zomato)
* **Payment Received:** Online, after deducting GST and TDS

**Clarification:**

* You must pay GST on the **gross value of supplies**, i.e., the **full invoice value of Rs. 40 lakhs**, not the net amount received.
* The Rs. 12 lakhs received via Swiggy/Zomato is **net of GST** and **net of TDS deducted by the platform**, but your GST liability is based on the **gross sale amount**, not the net amount received.
* Swiggy and Zomato act as **aggregators**, and they generally deduct GST and TDS before remitting payment to the restaurant.
* You should **issue GST invoices for the full value of supplies** (the gross amount) to the customers.
* If Swiggy/Zomato has deducted GST under **reverse charge mechanism** or on your behalf, confirm the nature of deduction and reporting mechanism.

---

### 2) Accounting Entries in Tally

Assuming weekly/monthly settlement from Swiggy/Zomato, you can pass entries as:

**When you receive payment (net of GST and TDS):**

```
Bank A/c Dr. (Net amount received)
TDS Receivable (or TDS Receivable A/c) Dr. (TDS deducted by platform)
GST Paid/Collected (if any) Dr. (GST deducted if applicable)
To Swiggy/Zomato Payable A/c (Total gross amount receivable)
```

**When you record sales:**

```
Swiggy/Zomato Payable A/c Dr. (Gross sale amount)
To Sales A/c (Gross sales)
To GST Payable (Output GST) (GST portion)
```

---

### 3) Accounting Entries Based on Weekly Statement from Swiggy/Zomato

From the statement, you get:

* Gross sales amount (before GST and TDS)
* GST deducted by Swiggy/Zomato (if any)
* TDS deducted
* Net amount credited to your bank

**Sample entries:**

* **To record gross sales and GST liability:**

```
Sales A/c Cr. (Gross sales amount)
GST Output A/c Cr. (GST on sales)
To Swiggy/Zomato Payable A/c (Total gross amount)
```

* **When payment is received (net of TDS and GST deducted):**

```
Bank A/c Dr. (Net amount received)
TDS Receivable A/c Dr. (TDS deducted by platform)
GST Paid A/c Dr. (GST deducted if any)
To Swiggy/Zomato Payable A/c (Total gross amount)
```

---

### Additional Notes:

* Swiggy/Zomato might deduct GST under **reverse charge** (if applicable), or they might deduct TDS as per Income Tax rules.
* You need to claim **TDS credit** while filing your income tax returns.
* Confirm the tax treatment with Swiggy/Zomato as sometimes they collect and deposit GST on your behalf, changing your GST liability.

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If you want, I can help prepare a sample voucher or ledger setup in Tally Prime. Would you like that?

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