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Composition Supply

Shaikh Shahnawaz (71 Points)

08 June 2019

Can Restaurant service which opt registration in Composition scheme, supply through Swiggy/ Zomato.

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4 Replies

Shivani Garg (student) (21 Points)
Replied 08 June 2019

Dear sir, as per the section 10(2) (d), (condition for composition scheme), the person should not engaged in supplies made though Electronic commerce operator who is required to collect TCS as per section 52.
In section 52, Tcs is collected by ECO who collects the amount of goods and services from recepient.
Therefore, the composition dealer cannot make supply through Zomato, Swiggy etc...

Shriti Goyal (625 Points)
Replied 08 June 2019

the registered person shall not be eligible for composition scheme if engaged in making supply of goods through electronic commerce operator.

which means that restaurant service cannot supply goods through electronic commerce operator like swiggy, Zomato etc.
They need to collect 5% in the turnover where no ITC can be availed.

Shivam RC (Student) (23683 Points)
Replied 08 June 2019

No...

Restricted by virtue of Section 10(2) of the CGST Act 2017.

Composition Scheme Dealers cannot supply their goods or services from an E-commerce operator who is required to collect Tax u/s 52 of the CGST Act 2017.

Warm Regards.

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