E commerce Related Issues

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CA jignesh daiya (Querist)
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29 December 2022 In dineout , Price is determined when invoices are prepared by Restaurant Then how dineout will issue invoice ? As when Customer Consume the goods then only price will be determined.

And

How we can show Tcs of unregistered supplier in GSTR 8 for eCommerce operator?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 For your first question regarding Dineout and invoicing:

Dineout typically operates as an intermediary between restaurants and customers for booking tables and sometimes for ordering food. Here’s how invoicing generally works in such scenarios:

1. Booking Service: Dineout charges restaurants a fee or commission for providing booking services. This fee/commission is typically invoiced based on the agreed terms between Dineout and the restaurant. The price (commission/fee) is determined by Dineout and can be invoiced once the service (booking) is provided or confirmed by the restaurant.
2. Food Ordering Service: If Dineout also offers a food ordering service where customers order food through their platform, the pricing may involve a similar model where Dineout charges a fee or commission to the restaurant based on the order value. Again, the invoice for this service is based on the agreed terms between Dineout and the restaurant, not directly on the consumption of goods by the customer.

In both cases, Dineout issues invoices to restaurants based on their service agreements, not directly related to the consumption of goods by customers. The invoicing happens according to the contractual terms between Dineout and the restaurants.

Regarding your second question about TCS (Tax Collection at Source) for unregistered suppliers in GSTR-8:

When an eCommerce operator (like Dineout, if applicable) collects TCS from an unregistered supplier, here’s how you can show it in GSTR-8:

1. Determine TCS Liability: Calculate the total TCS collected from unregistered suppliers during the reporting period.
2. Filing GSTR-8: In GSTR-8, which is the return filed by eCommerce operators, you will have a section to declare TCS collected. Here’s how you typically report it:
• Table 4: This section of GSTR-8 is for declaring TCS details. Enter the aggregate amount of TCS collected from unregistered suppliers under the appropriate section (likely “TCS Collected from Suppliers”).
• Ensure you provide accurate details of the suppliers from whom TCS was collected, including their GSTIN (if available) or other identifying information as required.
3. Payment of TCS: After filing GSTR-8, pay the TCS amount collected to the government within the stipulated time frame.
4. Issue Certificate: Provide a TCS certificate to the supplier from whom TCS has been collected, showing the details of the transaction and the amount of TCS deducted.

Always ensure compliance with GST rules and regulations regarding TCS, and if in doubt, consult with a tax professional or GST consultant for specific advice tailored to your business operations.