06 July 2024
Zomato generally does not inquire whether a restaurant is registered under the regular GST scheme or the composition scheme directly from its clients (restaurants). However, Zomato does require restaurants to comply with GST regulations and provide their GSTIN (Goods and Services Tax Identification Number) for tax compliance purposes.
If a restaurant is selling food through Zomato, whether they are registered under the regular GST scheme or composition scheme, they are still required to charge GST on the supplies made through the platform. Here’s how it typically works:
1. **GST Registration**: Restaurants must be registered under GST and provide their GSTIN to Zomato. This registration could be under the regular scheme (if their turnover exceeds the threshold limit) or the composition scheme (if eligible and opted for it).
2. **Tax Collection**: Zomato collects GST on behalf of the restaurants selling through its platform. The rate of GST applicable depends on whether the restaurant is under the regular scheme (usually 5% or 18% depending on the type of food) or the composition scheme (usually a lower rate, currently 5%).
3. **Compliance**: It is the responsibility of the restaurant to ensure they charge the correct GST rate applicable to them (as per their registration) on the supplies made through Zomato.
4. **Documentation**: Restaurants should maintain proper invoices and comply with GST filing requirements based on their registration type (regular or composition scheme).
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