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Restaurant under composition scheme

CA. N Naga Sumanth (Practice) (43 Points)

07 February 2019

Hi

can a restaurant supplying through e commerce operator i.e., through swiggy or Zomato opt for composition scheme?

thanks in advance

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7 Replies

Theepika (Article assistant) (57 Points)
Replied 07 February 2019

Business supply of service through e-commerce operator can not opt for composition scheme.

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CA. N Naga Sumanth (Practice) (43 Points)
Replied 07 February 2019

can you please share exact provision reference

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KAAMIL AHAMADH (ACCOUNTING/TAX CONSULTANCY AND ITR/GSTR FILING) (253 Points)
Replied 07 February 2019

Hi !

The following are the person who cannot opt for GST composition scheme:

Service providers (other than the person engaged in the supply of food and drinks i.e. restaurant services)

Producer of pan masala, or tobacco, ice cream

A non-resident taxable person, Casual taxable person

The person supplying goods through an e-commerce operator

Taxpayer supplying exempt supplies

as per 4th point above The person supplying goods through an e-commerce operator like swiggy etc.. cannot opt for composition scheme...

Regards
KAAMIL AHAMADH

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Dhiraj Wadhwani (53 Points)
Replied 07 February 2019

As per section 10(2)(d) of the CGST ACT, any person supplying goods through electronic commerce operator who(ECO) is required to deduct tax under section 52 shall not not be eligible for compostion scheme.

Shivam RC (Student) (23683 Points)
Replied 07 February 2019

Agree with Dhiraj Sir...

As per the Provision of Section 10(2)(d) of the CGST Act 2017, persons who are supplying goods through E-commerce operator is not eligible to opt for Composition Scheme u/s 10(1)...

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Ajay Kumar (44 Points)
Replied 07 February 2019

pls comment , is 20 lac limit applicable on rastaurent who supply food through swiggy etc?

Dhiraj Wadhwani (53 Points)
Replied 08 February 2019

As per section 24(ix) of CGST ACT, every person supplying goods or services through ECO are mandatorily required to be registered. Therefore limit of 20L is not applicable.