One of my clients is dealing in Restaurant Services. She sells foods and delivers to the customers via E-Commerce operators. At the end of a period, Swiggy / Zomato provides a detailed report of the sales (Returns if any) to the client. They also charge Convenience fees and GST on that. Now while filing GSTR-1, I am confused about the appropriate value that I should put in "Taxable Value". Please guide me.
07 July 2024
When filing GSTR-1 for restaurant services where sales are facilitated through E-commerce operators like Swiggy or Zomato, you need to report the taxable value correctly. Here’s how you can determine the taxable value for GSTR-1:
1. **Taxable Value for Food Sales**: - The taxable value for food sales includes the total amount charged to the customer for the food items. This is the amount that the customer pays, excluding any GST charged by the E-commerce operator.
2. **Exclusion of Convenience Fees**: - Convenience fees charged by the E-commerce operator are typically not part of the taxable value for GST purposes. These fees are considered separately charged for the convenience of using the platform and are not directly related to the sale of food.
3. **GST on Convenience Fees**: - The convenience fees charged by platforms like Swiggy or Zomato usually include GST. This GST amount collected by the E-commerce operator should be reported separately in GSTR-1 under the appropriate GSTIN of the operator.
4. **Reporting in GSTR-1**: - Ensure that when reporting the sales in GSTR-1, you report the total sales amount (excluding convenience fees) under the appropriate tax rate applicable to restaurant services. - The GST amount charged by the E-commerce operator on convenience fees should be reported separately under the correct GSTIN of the operator.
5. **Example Calculation**: - Suppose the total amount charged by Swiggy to the customer for food is Rs. 1,000. - Swiggy charges a convenience fee of Rs. 50, which includes Rs. 5 as GST. - The taxable value for GSTR-1 would be Rs. 1,000 (amount paid by customer for food). - The GST charged by Swiggy on convenience fees (Rs. 5) would be reported separately under Swiggy's GSTIN in your GSTR-1.
By following these guidelines, you ensure accurate reporting of taxable values and GST amounts in your GSTR-1 for restaurant services facilitated through E-commerce platforms. If you have specific questions about your client’s situation or need further clarification, consulting with a GST expert or a chartered accountant familiar with restaurant service taxation under GST would be advisable.
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