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CGST CircularMedium impact for ecommerce sellers

Supplies through e-commerce operators: Section 9(5), TCS and GSTR-1 Tables 14 and 15

Reviewed by CA Apurav GargSummary reviewed

Document
Circular No. 167/23/2021–GST and GSTN Advisory on GSTR-1 Tables 14 and 15
Issued
17 Dec 2021
Effective
Circular from 2022-01-01; Tables 14 and 15 from the January 2024 tax period
Issued by
CBIC (Circular); GSTN (Advisory)
Official PDF(opens in a new tab)

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What it means for ecommerce sellers

Circular 167/23/2021–GST clarifies how GST works when restaurant service is notified under section 9(5): the e-commerce operator (ECO) pays the GST in cash, issues the invoice and stops collecting TCS on those supplies, while TCS under section 52 continues on all other supplies through the ECO. GSTN's advisory adds two GSTR-1 tables from the January 2024 tax period. A seller reports ECO-wise sales on which the ECO collects TCS in Table 14(a), and sales on which the ECO pays tax under section 9(5) in Table 14(b). The ECO reports its section 9(5) supplies in Table 15. For product sellers on marketplaces, Table 14(a) is a summary of sales already reported in Tables 4 to 10, and it helps match the TCS the marketplace reports in GSTR-8.

Who it affects

  • Sellers supplying through Amazon, Flipkart, Meesho and other ECOs (Table 14)
  • Restaurants, cloud kitchens and other suppliers of section 9(5) services
  • E-commerce operators (Table 15 and GSTR-8)

Before and after

  • GST on restaurant service through an ECO

    Before
    Paid by the restaurant; ECO collected TCS
    After
    Paid by the ECO under section 9(5) from 1 January 2022, in cash

  • TCS on other supplies through an ECO

    Before
    Collected under section 52
    After
    Unchanged: still collected under section 52

  • Reporting ECO-wise sales in GSTR-1

    Before
    No separate table
    After
    Table 14(a) (TCS supplies) and Table 14(b) (section 9(5) supplies), from the January 2024 tax period

What to do

  1. Fill Table 14(a) of GSTR-1 with the ECO-wise summary of marketplace sales on which TCS is collected.
  2. Match the Table 14(a) figures with the TCS each marketplace reports in GSTR-8 (visible in your TCS credit).
  3. Restaurants and others supplying section 9(5) services through an ECO: report them in Table 14(b), which flows to GSTR-3B Table 3.1.1(ii).

Provisions referred to: Section 9(5) CGST Act; Section 52 CGST Act; Section 2(6) CGST Act; GSTR-1 Table 14; GSTR-1 Table 15; GSTR-3B Table 3.1.1; GSTR-8

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Official text

As issued by CBIC (Circular); GSTN (Advisory). Where the text starts with “Extract”, only the parts that concern ecommerce sellers are reproduced; the official PDF (opens in a new tab) is the authoritative version.

Type a word, number or section to highlight it below.

CBIC-190354/207/2021-TRU Section-CBEC Government of India Ministry of Finance Department of Revenue North Block, New Delhi, Dated the 17th December, 2021 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Sub: GST on service supplied by restaurants through e-commerce operators –reg. The GST Council in its 45th meeting held on 17th September, 2021 recommended to notify ‘Restaurant Service’ under section 9(5) of the CGST Act, 2017. Accordingly, the tax on supplies of restaurant service supplied through e- commerce operators shall be paid by the e-commerce operator. In this regard notification No. 17/2021 dated 18.11.2021 has been issued. 2. Certain representations have been received requesting for clarification regarding modalities of compliance to the GST laws in respect of supply of restaurant service through e-commerce operators (ECO). Clarifications are as follows: Sl No Issue Clarification 1. Would ECOs have to still collect TCS in compliance with section 52 of the CGST Act, 2017? As ‘restaurant service’ has been notified under section 9(5) of the CGST Act, 2017, the ECO shall be liable to pay GST on restaurant services provided, with effect from the 1st Sl No Issue Clarification January, 2022, through ECO. Accordingly, the ECOs will no longer be required to collect TCS and file GSTR 8 in respect of restaurant services on which it pays tax in terms of section 9(5). On other goods or services supplied through ECO, which are not notified u/s 9(5), ECOs will continue to pay TCS in terms of section 52 of CGST Act, 2017 in the same manner at present. 2. Would ECOs have to mandatorily take a separate registration w.r.t supply of restaurant service [notified under 9(5)] through them even though they are registered to pay GST on services on their own account? As ECOs are already registered in accordance with rule 8(in Form GST-REG 01) of the CGST Rules, 2017 (as a supplier of their own goods or services), there would be no mandatory requirement of taking separate registration by ECOs for payment of tax on restaurant service under section 9(5) of the CGST Act, 2017. 3. Would the ECOs be liable to pay tax on supply of restaurant service made by unregistered business entities? Yes. ECOs will be liable to pay GST on any restaurant service supplied through them including by an unregistered person. 4. What would be the aggregate turnover of person supplying ‘restaurant service’ through ECOs? It is clarified that the aggregate turnover of person supplying restaurant service through ECOs shall be computed as defined in section 2(6) of the CGST Act, 2017 and shall include the aggregate value of supplies made by the restaurant through ECOs. Accordingly, for threshold consideration or any other purpose in the Act, the person providing restaurant service through ECO shall account such Sl No Issue Clarification services in his aggregate turnover. 5. Can the supplies of restaurant service made through ECOs be recorded as inward supply of ECOs (liable to reverse charge) in GSTR 3B? No. ECOs are not the recipient of restaurant service supplied through them. Since these are not input services to ECO, these are not to be reported as inward supply (liable to reverse charge). 6. Would ECOs be liable to reverse proportional input tax credit on his input goods and services for the reason that input tax credit is not admissible on ‘restaurant service’? ECOs provide their own services as an electronic platform and an intermediary for which it would acquire inputs/input service on which ECOs avail input tax credit (ITC). The ECO charges commission/fee etc. for the services it provides. The ITC is utilised by ECO for payment of GST on services provided by ECO on its own account (say, to a restaurant). The situation in this regard remains unchanged even after ECO is made liable to pay tax on restaurant service. ECO would be eligible to ITC as before. Accordingly, it is clarified that ECO shall not be required to reverse ITC on account of restaurant services on which it pays GST in terms of section 9(5) of the Act. It may also be noted that on restaurant service, ECO shall pay the entire GST liability in cash (No ITC could be utilised for payment of GST on restaurant service supplied through ECO) 7. Can ECO utilize its Input Tax Credit to pay tax w.r.t ‘restaurant service’ supplied through the ECO? No. As stated above, the liability of payment of tax by ECO as per section 9(5) shall be discharged in cash. 8. Would supply of goods or services other than ECO is required to pay GST on services notified under section 9(5), besides the Sl No Issue Clarification ‘restaurant service’ through ECOs be taxed at 5% without ITC? services/other supplies made on his own account. On any supply that is not notified under section 9(5), that is supplied by a person through ECO, the liability to pay GST continues on such supplier and ECO shall continue to pay TCS on such supplies. Thus, present dispensation continues for ECO, on supplies other than restaurant services. On such supplies (other than restaurant services made through ECO) GST will continue to be billed, collected and deposited in the same manner as is being done at present. ECO will deposit TCS on such supplies. 9. Would ‘restaurant service’ and goods or services other than restaurant service sold by a restaurant to a customer under the same order be billed differently? Who shall be liable for raising invoices in such cases? Considering that liability to pay GST on supplies other than ‘restaurant service’ through the ECO, and other compliances under the Act, including issuance of invoice to customer, continues to lie with the respective suppliers (and ECOs being liable only to collect tax at source (TCS) on such supplies), it is advisable that ECO raises separate bill on restaurant service in such cases where ECO provides other supplies to a customer under the same order. 10. Who will issue invoice in respect of restaurant service supplied through ECO -whether by the restaurant or by the ECO? The invoice in respect of restaurant service supplied through ECO under section 9(5) will be issued by ECO. 11. Clarification may be issued as regard reporting of restaurant services, value and tax liability etc in the GST return. A number of other services are already notified under section 9(5). In respect of such services, ECO operators are presently paying GST by furnishing details in GSTR 3B. The ECO may, on services notified under Sl No Issue Clarification section 9 (5) of the CGST Act,2017, including on restaurant service provided through ECO, may continue to pay GST by furnishing the details in GSTR 3B, reporting them as outward taxable supplies for the time being. Besides, ECO may also, for the time being, furnish the details of such supplies of restaurant services under section 9(5) in Table 7A(1) or Table 4A of GSTR-1, as the case maybe, for accounting purpose. Registered persons supplying restaurant services through ECOs under section 9(5) will report such supplies of restaurant services made through ECOs in Table 8 of GSTR-1 and Table 3.1 (c) of GSTR-3B, for the time being. 3. Difficulty, if any, in the implementation of this circular may be brought to the notice of the Board. Yours faithfully, Anna Sosa Thomas Technical Officer (TRU) Email: anna.thomas@gov.in — GSTN Advisory on GSTR-1/IFF: Introduction of New 14 and 15 tables — Advisory on GSTR-1/IFF: Introduction of New 14 and 15 tables Notification No.: 26/2022 – Central Tax dated December 26, 2022 1. Purpose: The purpose of this advisory is to make taxpayers aware of the new Table 14 and 15 in FORM GSTR-1 and IFF. These tables are relevant for only those taxpayers who either supply through E-Commerce operator (ECO) or are themselves liable to pay tax under Section 9(5) of the GST Act. 2. Introduction: As per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new tables Table 14 and Table 15 were added in GSTR-1 to capture the details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 of the Act or liable to pay tax u/s 9(5). These tables have now been made live on the GST common portal. These two new tables will be available in GSTR-1/IFF from January-2024 tax periods onwards. 3. Table Wise Details Table Details Description 14. (a) Details of the supplies made through e-commerce operators on which e-commerce operators are liable to collect tax under section 52 of the Act [Supplier to report] • The ECO-GSTIN wise summary of the supplies made through ECO on which ECO is liable to collect tax at sources (TCS) and liability on which has already been reported in any table 4 to 10 of GSTR-1, shall be reported by the supplier in this section. • No taxable value or tax liabilities will be auto-populated from this table to GSTR-3B. • Amendments to be reported in 14A(a). 14. (b) Details of the supplies made through e-commerce operators on which e-commerce operators are liable to pay tax u/s 9(5) [Supplier to report] • In this section the summary details of the supplies made through ECO on which ECO is liable to pay tax u/s 9(5) is to be reported by the supplier. Tax on such supplies shall be paid by the ECO and not by the supplier. This is to be reported net of credit / debit note (if any). • Such values will be auto-populated to Table 3.1.1(ii) of GSTR-3B. • Amendments to be reported in 14A(b). 15. Details of the supplies made through e-commerce operators on which e-commerce operator is liable to pay tax u/s 9(5) [e-commerce operator to report] • Eco shall report the supplies on which they are liable to pay tax u/s 9(5) in Table 15. Such supplies shall not be reported anywhere else in GSTR-1/IFF. • Registered Supplier and Registered Recipient (B2B)– In this section the details of such supplies where both the supplier and receiver of supplies are registered person, is to be reported by ECOs at invoice level. This will be available in IFF also. Debit Note / credit note (if any) to be reported in Table 9B. • Registered Supplier and Unregistered Recipient (B2C)– In this section the supplier level details along with POS and rate wise detail of the supplies related to the transaction where the supply is being made from a registered supplier to unregistered recipient need to be reported by e-commerce operator. This will not be available in IFF. This is to be reported net of credit / debit note (if any). • Unregistered Supplier and Registered Recipient (URP2B)– In this section the document level details of the supplies made from unregistered supplier to registered recipient through ECO needs to be reported by the e-commerce operator. The detail to furnish will include the document detail and GSTIN of recipient. This will be available in IFF also. Debit Note / credit note (if any) to be reported in Table 9B. • Unregistered Supplier and Unregistered Recipient (URP2C)– In this section the POS and rate wise detail of the supplies to be reported by e-commerce operator related to the transaction of such supplies from an unregistered supplier to unregistered recipient through ECO. This will be not be available in IFF. This is to be reported net of credit / debit note (if any). • The values shall be auto-populated in Table 3.1.1(i) of corresponding GSTR-3B and such liabilities is to be paid by the ECOs in GSTR-3B in cash. • Amendments to be reported in Table 15A(I) & 15A(II). 4. Other Salient Features :- 1. Taxable value along with tax liabilities from all the above four sections i.e., B2B, B2C, URP2B and URP2C of table 15 will be auto-populated to table 3.1.1(i) of GSTR-3B. 2. There will be no auto-population of e-invoice in Table -15. E-invoices reported for 9(5) supplies will be populated in FORM GSTR-1 as per existing functionality. E-commerce operator are advised to examine and add such records in table 15 related to 9(5) supplies. 5. Step to report details in Table 14/15: 1. To view Table 14/15, taxpayer can navigate to Returns Dashboard > Selection of Period > Details of outward supplies of goods or services GSTR-1 > Prepare Online 2. Taxpayers can access the Table 14(a) & 14(b) by clicking theLiable to collect tax u/s 52 (TCS) andLiable to pay tax u/s 9(5) respectively available at the top of table 14 page. 3. Similarly, the different section of Table 15 can be accessed using the respective tab available at top of the table 15 page. 4. After adding the records taxpayers can file their GSTR-1 as per the existing process. Introduction of new table ECO-Documents in GSTR-2B 1. The taxpayers are also being provided a facility to pass input tax credit (ITC) to the registered taxpayers who are receiving the supplies u/s 9(5) through ECO. Such ITC will be available to the registered recipient in newly introduce section in GSTR-2B. A new table “ECO - Documents” is being added under all other ITC section in GSTR-2B. In this table, the registered recipient can view the document details of the supplies received through e-commerce operator on which e-commerce operator is liable to pay tax under section 9(5) of the Act. 2. The values will be auto populated fromRegistered Supplier and Registered Recipient (B2B) andUnregistered Supplier and Registered Recipient (URP2B) section of table 15 to this new ECO - Documents table of GSTR-2B. 3. To view the ECO-Documents table, taxpayer can navigate to Returns Dashboard > Selection of Period > Auto- drafted ITC Statement for the month GSTR 2B > View 5. To view the records in ECO-Documents table, taxpayer can navigate to Returns Dashboard > Selection of Period > Auto- drafted ITC Statement for the month GSTR 2B > View > ECO Documents * * * * * * *

Questions sellers ask

Who pays GST on food ordered through a delivery app?

From 1 January 2022, restaurant service supplied through an e-commerce operator is notified under section 9(5), so the ECO pays the GST and issues the invoice. Circular 167/23/2021–GST explains how this works.

Does the marketplace still collect TCS on my product sales?

Yes. The circular states that on supplies not notified under section 9(5), the supplier remains liable to pay GST and the ECO continues to collect TCS under section 52.

What is Table 14 of GSTR-1?

Introduced by Notification 26/2022–Central Tax and live from the January 2024 tax period, Table 14(a) is the ECO-GSTIN-wise summary of supplies on which the ECO collects TCS, and Table 14(b) covers supplies on which the ECO pays tax under section 9(5).

Does Table 14(a) change my GST liability?

No. GSTN's advisory says no taxable value or tax liability is auto-populated from Table 14(a) to GSTR-3B; those sales are already reported in Tables 4 to 10.

Want help working out what this means for your business?

We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.

Contact usWhatsApp us

General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.