GST on Delivery Charges collected by restaurant.

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588 Points Posted on 08 October 2020
Restaurant is giving home delivery and collects charges from customer. So GST will be charges at what rate 5% or 18% ?
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On 08 October 2020 at 10:48 Report
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This discussion clarifies the GST rate applicable to delivery charges collected by restaurants. If the restaurant itself collects the charges, the GST rate will match that of the principal supply (food service), typically 5%. However, if an e-commerce operator collects the charges, a GST of 18% applies. This is because delivery charges are considered a composite supply, following the rate of the main service provided by the restaurant, as per Section 8 of the CGST Act 2017.

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Assistant Manager
118 Points Posted on 08 October 2020
Delivery charges taken by restaurant will be charged at same rate of restaurants service whether it is 5% or 18% but if charges are taken by e-commerce operator it will be 18%
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On 08 October 2020 at 11:25
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Tax and Business Consultant
11616 Points Posted on 08 October 2020
It's composite Supply, same rate applicable as of principal Supply.
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On 08 October 2020 at 14:18
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Audit Executive
54 Points Posted on 08 October 2020

refer sec 8 of cgst act 2017.

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On 08 October 2020 at 15:18

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