- GST on restaurant services is generally 5% without input tax credit (ITC) for dine-in and takeaway orders, with the restaurant collecting and paying the GST.
- For food ordered through delivery apps, the e-commerce operator (aggregator) collects and deposits the GST under Section 9(5), not the restaurant.
- Restaurants must still report app-based sales in their GST returns and include them in their turnover.
- Proper segregation of dine-in, takeaway, and app sales, along with accurate record-keeping and reconciliation with aggregator statements, is essential for compliance.
- Takeaway and parcel orders are treated as restaurant services (not sale of goods) and attract the same GST as dine-in.
Source: tallysolutions.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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