New registration gst query

Your query involves multiple parties and transactions within a homemade food delivery business model via an e-commerce platform (LLP). Below is a detailed breakdown based on current GST rules (as of FY 2025-26):

🔶 1. GST Applicability on Home-Made Food via E-Commerce (Effective 1 Jan 2022 Onwards)

As per Notification No. 17/2021 – Central Tax (Rate), e-commerce operators (ECO) are liable to collect and pay GST on restaurant services supplied through them (under Section 9(5) of CGST Act).

✅ Does this apply to home-made food?

If home-made food is cooked and supplied ready-to-eat, it resembles restaurant services, and Section 9(5) applies.

🔹 Scenario Summary

🔶 2. GST Rate on Food Delivered via E-Commerce

✔️ Applicable GST Rate:

• 5% GST (2.5% CGST + 2.5% SGST)
  (No ITC allowed if under restaurant-like services)

Note: If the food is not ready-to-eat (e.g., raw materials, grocery), GST rate depends on HSN code of the item.

🔶 3. Who Bears the GST Liability?

👉 Under Section 9(5) of CGST Act:

• The e-commerce operator (your LLP) is liable to collect and pay GST on behalf of the home food sellers.

• Home-made sellers need not register under GST if they’re only supplying through your platform and are otherwise unregistered.

🔶 4. Commission Income by E-Commerce LLP (You)

✔️ GST on Your Commission:

• This is a supply of service by your LLP to home-based sellers.

• GST @ 18% is applicable on commission/service charges you deduct from payouts.

🔶 5. GST on Delivery/Logistics Services

✅ If Delivery Is by Third-Party Logistics:

• GST on logistics is usually 18% (if not exempt).

• If delivery partner is independent and raises invoice to you (ECO), then:

  • GST will be charged by them to you.

  • You (LLP) can take ITC on that, if eligible.

🔶 6. Summary of GST Impact

🔶 7. Other Key Points

• ECO needs mandatory GST registration (even if turnover < ₹20L/₹40L).

• TCS (1%) under GST also applies on ECOs under Section 52.

• Maintain proper agreements with home food sellers, delivery agents, and disclose GST clearly on invoices.

✅ Recommendations

• Classify your offerings properly (ready-to-eat vs packaged food).

• Apply Section 9(5) for restaurant-like food only.

• Keep automated invoicing system per GST norms.

• Register under FSSAI if supplying edible items.