Restaurants entry for zomato sales as per recent notification

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This query is : Resolved

katturan tk (Querist)

04 February 2022 sir kindly advice as per new notification zomato is liable to pay gst for restaurant sales through it. restaurants are noy liable. how the bill may issued to zomato and how returns are filed. is it required to issue e invoice to zomato or not ?. all entries of restaurants

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

10 July 2024 As per the new GST notification effective from January 1, 2022, platforms like Zomato are liable to pay GST on restaurant sales facilitated through their platforms, rather than the restaurants themselves. Here’s how the invoicing and GST compliance should be handled:

### Invoicing by Restaurants to Zomato:

1. **Invoice Format:**
- Restaurants need to issue invoices to Zomato for the services (food supply) provided through the platform.
- The invoice should include all mandatory GST details:
- Name, address, and GSTIN of the restaurant.
- Name and address of Zomato.
- Invoice number and date.
- Description of services (food items sold).
- Quantity and value of goods supplied.
- GST rate and amount charged.
- Place of supply (location of the restaurant).

2. **E-Invoicing Requirement:**
- E-invoicing is mandatory for businesses with a turnover exceeding the prescribed limit. For restaurants, e-invoicing is applicable if the aggregate turnover exceeds Rs. 20 crore in any financial year.
- Restaurants should issue e-invoices to Zomato if they meet the turnover criteria for e-invoicing.

### GST Returns Filing:

1. **Zomato’s Responsibility:**
- Zomato is responsible for collecting GST from customers (end-users of the food) and paying it to the government.
- Zomato needs to file GST returns (GSTR-1 for outward supplies, GSTR-3B for summary return) on behalf of the restaurants it represents on the platform.
- Zomato should reconcile the GST collected from customers with the GST paid to restaurants.

2. **Restaurants’ Obligations:**
- Restaurants should ensure that they issue correct invoices to Zomato for the food supplied through the platform.
- Restaurants should verify that Zomato correctly accounts for and pays the GST collected on their behalf.

### Practical Steps for Restaurants:

- **Invoice Preparation:** Prepare invoices for the food supplied to Zomato, ensuring all GST details are accurately captured.
- **E-Invoicing (if applicable):** If your turnover exceeds Rs. 20 crore, issue e-invoices to Zomato as per the e-invoicing rules.
- **GST Compliance:** Monitor the GST payments and returns filed by Zomato on your behalf. Ensure that all transactions are correctly accounted for to avoid any discrepancies.

By following these steps, restaurants can ensure compliance with the new GST regulations where Zomato is liable for GST on restaurant sales facilitated through its platform. Always consult with a tax advisor or GST consultant for specific guidance tailored to your business situation.

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