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For restaurant service supplied through an electronic commerce operator (ECO) in India, the ECO is generally liable to pay GST under section 9(5) of the Central Goods and Services Tax (CGST) Act. The ECO also issues the invoice for that covered restaurant service. This is different from tax collected at source (TCS) under section 52, which applies to other qualifying e-commerce supplies.
Seeing a GST line on an order does not automatically give a customer an input tax credit (ITC). A claimant normally must be a registered person, hold the prescribed tax document, use the purchase for eligible business activity and satisfy all applicable conditions and restrictions.
Who pays GST on a food delivery order?
This answer is specific to India and to restaurant service supplied through an ECO, such as an app-based food-delivery platform. Restaurant service was brought into the section 9(5) mechanism with effect from 1 January 2022.
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Under section 9(5), the ECO is treated as the person liable to pay GST for the notified restaurant service supplied through it. In practical terms, the restaurant may prepare the food, but the platform has the statutory responsibility for the GST on that covered service. Official implementation material states: “the invoice in respect of restaurant service supplied through ECO under section 9(5) will be issued by ECO.”
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That legal rule is narrower than saying the platform is responsible for every amount in a checkout screen. An order can contain restaurant service alongside delivery, convenience, packaging or other charges. Each line must be identified by its description and tax treatment. The section 9(5) rule applies to the notified restaurant service, not automatically to every separate supply shown in the order.
What “the platform collects GST” can obscure
A customer may pay one combined amount to an app, but payment presentation is not the same as statutory liability. For covered restaurant service, the important legal facts are that the ECO pays the output GST and issues the invoice. The app’s checkout design does not, by itself, establish how each charge is classified or who is liable for tax on it.
Section 9(5) is not the same as section 52 TCS
Two e-commerce provisions are often incorrectly described as “platform GST.” They perform different jobs.
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| Question | Section 9(5): notified restaurant service through an ECO | Section 52: other qualifying e-commerce supplies |
|---|---|---|
| Who is responsible for the output tax? | The ECO pays GST as if it were the supplier for the notified service. | The underlying supplier’s GST liability remains distinct; the ECO collects TCS when the statutory conditions apply. |
| What does the platform do? | It pays GST on the notified restaurant service and issues the related invoice. | It collects and reports TCS on qualifying supplies where it collects the consideration. |
| Is this a platform fee? | No. The platform’s own service is a separate supply from the restaurant service. | No. TCS is a statutory collection mechanism, not the platform’s service charge. |
| What does it mean for ITC? | The ECO cannot use its own ITC to pay the section 9(5) restaurant-service liability. | TCS treatment does not establish whether a customer can claim ITC. |
| What records matter? | The restaurant-service invoice or order record and its classification. | Supplier and ECO records and the applicable TCS reporting treatment. |
Do not describe the ECO as collecting section 52 TCS on the restaurant-service amount when it is paying GST under section 9(5). The mechanisms should be analysed separately.
Where is GST shown on a food-delivery bill?
The reviewed official material identifies the ECO as the invoice issuer for covered restaurant service, but it does not prescribe one universal app menu. Platforms place invoices in different locations and may label them “Invoice,” “Tax invoice,” “Bill,” “Receipt” or “Order details.”
Use the order record rather than relying on the final checkout total. A useful review sequence is:
- Open the completed order in the delivery app or website.
- Look for an option such as View invoice, Download tax invoice, Bill details or Receipt. The exact label and location vary by platform.
- Confirm the invoice issuer and the description of the supply. For section 9(5) restaurant service, the ECO should be identified as the issuer.
- Check the taxable value, tax amount and any separate line items for delivery, packaging, convenience or other services.
- Save the original electronic invoice, including its number, date and supplier details, if you may need it for business records.
If you see only a payment receipt, contact the platform through the order’s support channel and request the tax invoice. A card or bank statement proves payment but is not a substitute for the prescribed tax document when claiming ITC.
Why the checkout total is not enough
A displayed total may combine taxable and non-taxable components, discounts, refunds or charges supplied by different parties. It does not necessarily show the tax base or identify the supplier for every component. Only the detailed invoice lets you test whether the amount relates to restaurant service and whether the document contains the particulars needed for a tax claim.
What GST rate applies?
CBIC’s rate listing shows restaurant service other than at specified premises at 5%, subject to the condition that input tax charged on goods and services used to provide that service has not been taken. The listing is a category-specific rate with a supplier-side condition; it is not a universal 5% rule for every food-related amount.
Do not automatically apply 5% to a separately supplied platform fee, delivery charge, packaging charge or another item. Classification, the supplier and the applicable notification determine the treatment. Check the current CBIC rate listing and relevant notifications for the date and facts of the transaction.
The no-ITC condition attached to the restaurant-service rate concerns the restaurant supplier’s rate treatment. It does not grant or deny a customer’s ITC by itself.
Can a customer claim ITC on a restaurant meal?
GST printed on a bill is not an automatic customer rebate. A business claimant must satisfy the statutory ITC requirements and any restriction applicable to the particular expense. The baseline checks are:
- Registration: The claimant must be a registered person entitled to take ITC under the GST law. An unregistered consumer cannot turn a GST line on a personal receipt into an ITC claim.
- Prescribed document: Keep a valid tax invoice or other permitted document containing the required particulars. An order confirmation or payment screenshot alone may not meet this requirement.
- Business connection: Establish that the purchase relates to eligible business activity, rather than personal consumption.
- Receipt and records: Retain the invoice and evidence needed to support receipt of the supply and accounting treatment.
- Restrictions: Check blocked-credit provisions and any other statutory conditions before reporting the amount in a return.
The available official material does not resolve every meal-expense situation. Whether a particular restaurant meal is eligible can depend on the claimant’s business, purpose, documentation and restrictions. A registered company, a sole proprietor and an employee paying for a personal meal may have different outcomes.
Examples of questions a business should answer before claiming
- Is the GST registration in the same legal entity named on the invoice?
- Does the invoice identify the ECO as issuer for the covered restaurant service?
- Was the meal purchased for a documented business purpose?
- Is the expense subject to a blocked-credit rule or another restriction?
- Are the invoice details complete and retained in the accounting records?
If any answer is uncertain, hold the claim until the facts and current law are checked. Do not treat an app’s “GST included” label as an approval of ITC.
How the ECO’s own ITC works
The platform’s tax position is separate from a customer’s meal claim. Circular 167/23/2021-GST explains that the ECO’s platform activity and the restaurant service are different supplies. The ECO may claim ITC on inputs and input services used for its own platform services, subject to the normal rules.
However, the ECO must pay the section 9(5) restaurant-service liability in cash. It cannot use its own ITC balance to discharge that liability. Circular 240/34/2024-GST further clarifies that the ECO is not required to reverse proportionate ITC on its inputs and input services for the specified section 9(5) supplies. These operator-side rules do not create an ITC entitlement for the person ordering a meal.
How section 9(5) appears in GST reporting
GST return reporting distinguishes supplies covered by section 9(5). The GSTR-3B amendment provides a separate section 3.1.1 for supplies under section 9(5), including reporting by the ECO and the registered supplier. This reporting structure reinforces that section 9(5) is a separate liability mechanism.
Return tables and filing instructions can change. Use the current GST portal guidance, applicable notifications and the taxpayer’s own records rather than copying an old return example. The existence of a section 9(5) table does not decide whether a particular customer expense is eligible for ITC.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common mistakes and how to correct them
Calling every amount “platform GST”
Problem: A single checkout total is treated as one tax supply.
Correction: Download the invoice and review each line. Separate restaurant service from platform, delivery, packaging and other charges before applying a rule.
Confusing TCS with GST on the meal
Problem: Section 52 TCS is described as the tax the platform pays on a section 9(5) restaurant service.
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Correction: Use section 9(5) for the notified restaurant-service liability and section 52 for TCS on other qualifying e-commerce supplies.
Claiming ITC because GST is printed on the receipt
Problem: The customer treats the tax line as an automatic credit.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsCorrection: Verify registration, invoice requirements, business use and blocked-credit restrictions first.
Applying 5% to every food-order charge
Problem: The restaurant-service rate is extended to delivery or platform charges without classification evidence.
Correction: Keep the 5% figure tied to the CBIC restaurant-service category and its no-ITC supplier condition; check the treatment of each separate charge.
Using a payment record as the tax invoice
Problem: A bank statement, card slip or email confirmation is filed as the only support.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchCorrection: Retrieve the invoice from the completed order or request it from the ECO. Preserve the document and match it to the accounting entry.
A practical checklist for reviewing an order
- Confirm the transaction is governed by Indian GST.
- Identify whether the relevant line is restaurant service supplied through an ECO.
- Open and save the order invoice, not just the payment confirmation.
- Check who is named as issuer and what taxable value and tax amount are shown.
- Separate restaurant service from delivery, packaging, convenience and platform charges.
- For an ITC review, confirm the claimant’s GST registration and business purpose.
- Check invoice particulars, receipt of supply and applicable blocked-credit rules.
- Use the current rate listing, notifications and return instructions for the transaction date.
- Ask a qualified GST professional about a disputed invoice or unusual business-use case.
When to seek professional advice
Get specific advice before claiming a material amount, correcting a past return, handling a disputed supplier classification or deciding whether a meal expense is blocked. The CGST Act, rate notifications, circulars and return procedures can be amended, and the answer depends on the taxpayer’s registration, records and purpose. Keep the invoice and the facts of the transaction available for review.
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