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Sale through E - Commerce

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)

24 June 2021

XYZ(Proprietor) having a sweet shop and from the same premises he is also providing restaurant services. Items sold on shop counter, the GST rate charged is the rate applicable to that product and item sold from restaurant, GST @ 5% is charged. Certain items which are sold from shop counter are also sold through Zomato, Swiggy etc. or is given as home delivery by the shop themselves. The GST rate for such deliveries will be treated as restaurant service or shop sale?

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4 Replies

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 24 June 2021

Shop sale ..........

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 24 June 2021

Shop sale

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 25 June 2021

It will be treated. as shop sale .
Reference :
AAAR in case of M/s Kundan misthan Bhandar : The goods sold over the counter have nothing to do with the restaurant part. Their sale can’t attract 5% tax. In this case their respective rates, as an item will be relevant.
The supply of a bunch of items from the counter wont attract the composite supply provision. It will get covered in mixed supply. In this case the tax rate of item having the maximum will be relevant. As per the provisions of section 8 of CGST Act, tax rate of highest rate item will be applied on entire supply.