IRCTC catering supplies classified as separate goods and services, not composite supply under GST

AAR ruled that IRCTC's catering contractor's supplies constitute separate goods and services rather than composite supply. Food and beverages sold on trains and platforms are classified as pure supply of goods taxable at respective GST rates without notification benefits. Service charges for on-board catering qualify as catering services under applicable notifications. Newspaper supply attracts nil GST. The authority rejected composite supply classification as various components have separate values with no principal supply element. Food plaza supplies could not be ruled upon due to insufficient documentation.

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Issues Involved:
1. Applicable rate of tax on the supply of food and beverages in various scenarios.
2. Applicable rate of tax on the supply of newspapers.

Detailed Analysis:

Issue 1: Applicable Rate of Tax on the Supply of Food and Beverages

A. Supply of Food through the Food Plaza/Food Stalls on the Railway Platform:

- Applicant's View: The supply of food from the Food Plaza/Food Stall falls under the category of services provided by a restaurant, eating joint, etc., taxable at the rate of 2.5% each under CGST and Delhi GST.
- Jurisdictional Officer's Comments: The applicant's classification under entry (i) of S.No. 7 of Notification No. 46/2017-Central Tax (Rate) dated 14.11.2017 is correct.
- Ruling: The supply of food and beverages (cooked/MRP/packed) at food stalls has no element of service and is considered pure supply of goods. GST shall be charged on individual items at their respective applicable rates. The benefit of S.No. 7 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 is not admissible to the applicant.

B. Supply of Food on Board the Rajdhani Trains:

- Applicant's View: The supply of food on board the Rajdhani trains falls under the category of services provided by a restaurant, eating joint, etc., taxable at the rate of 2.5% each under CGST and Delhi GST.
- Jurisdictional Officer's Comments: The activity seems to fall under entry (v) as outdoor catering, taxable at 9%.
- Ruling: The service charges for catering services on board Rajdhani/Duronto Express trains are covered under Service Code (Tariff) 996335 as "catering services in train" and are taxable under S.No. 7 (ix) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 at 9%. The supply of food and beverages is considered pure supply of goods, and GST shall be charged on the value of goods (excluding service charges) at applicable rates. The supply of newspapers is at 'Nil' GST under S.No. 120 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017.

C. Supply of Food on Board the Mail/Express Trains:

- Applicant's View: The supply of food on board the Mail/Express trains falls under the category of services provided by a restaurant, eating joint, etc., taxable at the rate of 2.5% each under CGST and Delhi GST.
- Jurisdictional Officer's Comments: The activity seems to fall under entry (v) as outdoor catering, taxable at 9%.
- Ruling: The supply of food and beverages (cooked/MRP/packed) on board Mail/Express trains by the applicant directly to passengers is considered pure supply of goods. GST shall be charged on individual items at their respective applicable rates. The benefit of S.No. 7 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 is not admissible to the applicant.

D. Supply of Food in Food Plaza on Railway Platform:

- Applicant's View: Not explicitly provided.
- Jurisdictional Officer's Comments: Not explicitly provided.
- Ruling: No ruling can be given due to the lack of submission of relevant documents pertaining to details of items supplied, pricing details, and the extent of services provided.

Issue 2: Applicable Rate of Tax on the Supply of Newspapers

- Applicant's View: The supply of newspapers is exempt from tax vide Entry at S.No. 120 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017.
- Jurisdictional Officer's Comments: The supply of newspapers is nil rated on account of being exempt vide Entry S.No. 120 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017.
- Ruling: The supply of newspapers is at 'Nil' GST under S.No. 120 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017.

Conclusion:
The Authority for Advance Rulings determined that the supply of food and beverages on board trains and at railway platforms should be treated as pure supply of goods, subject to GST at applicable rates for each item. Catering services on board trains are classified under "catering services in train" and taxed at 9%. The supply of newspapers is exempt from GST. The ruling clarifies that trains cannot be considered as restaurants or eating joints for tax purposes.

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