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Sale through E - Commerce

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Kaustubh Ram Karandikar

Corporate Consultant- Central Excise &am

519 Points Posted on 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?

Replies (4)

Quick Summary

This discussion clarifies the GST treatment for sweet shop items sold via e-commerce platforms like Zomato or Swiggy, or through home delivery. It establishes that these sales should be treated as shop sales, not restaurant services, and therefore attract the standard GST rate applicable to the specific product, rather than the 5% restaurant rate. The ruling references a case where goods sold over the counter are distinct from restaurant offerings and should not be taxed at the lower restaurant rate.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 24 June 2021

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

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 24 June 2021

Shop sale

Pankaj Rawat

GST Practitioner

55067 Points Posted on 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.