Packed traded goods are taxable as goods, not restaurant service, and related input tax credit is available under GST.

Packed food products and other items sold as purchased were classified as supplies of goods, not as restaurant service under Group 99633, because the service-rate notification applies only to services and the items were not supplied as part of restaurant service. The applicable rate was therefore that prescribed for taxable goods under the relevant rate notification, as amended from time to time. As the outward supply was taxable, input tax credit was available on the tax paid in relation to those goods, subject to the ordinary conditions of GST law.

---

---

Issues: (i) Whether the sale of packed food products and other packed items sold as purchased by the applicant is taxable as goods at the applicable rate or falls under the restaurant service classification under Group 99633. (ii) Whether the applicant is entitled to input tax credit on the tax paid on such supplies.

Issue (i): Whether the sale of packed food products and other packed items sold as purchased by the applicant is taxable as goods at the applicable rate or falls under the restaurant service classification under Group 99633.

Analysis: The packed commodities sold by the applicant were found to be goods and not articles supplied as part of restaurant service. The relevant service-rate notification was held inapplicable because it governs supplies of services, whereas the applicant's packed items are supplies of goods. The supplies were therefore held to be covered by the notification governing taxable goods and to attract the rates applicable to goods under the relevant rate notification, as amended from time to time.

Conclusion: The sale of the packed items is taxable as supply of goods at the appropriate rate and is not covered by the restaurant service classification under Group 99633.

Issue (ii): Whether the applicant is entitled to input tax credit on the tax paid on such supplies.

Analysis: Once the packed items were held to be taxable goods and output tax was payable on their supply, the applicant became entitled to the input tax credit relatable to those taxable outward supplies, subject to the ordinary admissibility under the GST law.

Conclusion: The applicant is eligible to take the applicable input tax credit relatable to the supply of such goods.

Final Conclusion: The ruling determines that the applicant's packed traded products are to be taxed as goods rather than restaurant services, and that input tax credit is available in relation to those taxable goods supplies.

Ratio Decidendi: A supply of pre-packaged traded goods sold as purchased is to be classified and taxed as supply of goods, not as restaurant service, and input tax credit is admissible when such outward supply is taxable.

---