The CBIC vide Circular No. 167/23/2021–GST dated December 17,2021 issued clarification regarding compliance of the GST laws in respect of supply of restaurant service through ECO.

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 ECO shall be paid by the ECO. In this regard notification No. 17/2021 dated November 18,2021 has already been issued.

In respect of 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. ECOs will be liable to pay GST on any restaurant service supplied through them including by an unregistered person.

CBIC further clarified that for computing aggregate turnover or any other purpose in the Act, the person providing restaurant service through ECO shall account such services in his aggregate turnover.