AAR rules catering services to industries under tariff code 996337 attract 18% GST under residual entry 7(vi)

The AAR Tamil Nadu ruled that the applicant's supply of food and beverages for consideration constitutes a service under tariff code 996337. The authority determined that the catering services provided under contract to industries do not qualify as restaurant service, outdoor catering service, or hotel accommodation as these categories have specific definitions. Since the activity doesn't fall under categories 7(i) to 7(v) of the notification, it falls under the residual entry 7(vi), attracting 9% CGST and 9% SGST under Notification No. 11/2017-State Tax (Rate).

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Issues involved:
The issues involved in this legal judgment include the admissibility of an application for Advance Ruling regarding outdoor catering services, determination of the appropriate Tariff heading, Rate of Tax, and relevant notification for the activity.

Admissibility of the application:
The Advance Ruling Authority considered the application for Advance Ruling on outdoor catering services to be admissible under Section 97(2) of the CGST/TNGST Act, 2017 based on the scope of the questions raised by the Applicant.

Classification of service and Tariff heading:
The Authority determined that the activity of supplying food and beverages for a consideration by the Applicant constitutes a 'supply of service' as per Schedule II of the CGST Act, 2017. The service provided by the Applicant was classified under the Tariff/Service code 996337, as per the Annexure to Notification No. 11/2017-CT(Rate) dated 28.06.2017.

Outdoor Catering Service classification and Rate of Tax:
The Authority clarified that the service provided by the Applicant does not fall under the definition of 'Outdoor Catering Service' as per relevant notifications. Instead, the catering services under a contract were categorized under entry No. 7(vi) of Notification No. 11/2017-CT(Rate) dated 28.06.2017, attracting 9% CGST and 9% SGST.

Ruling:
The ruling stated that the proposed activity of supplying food by the Applicant falls under 'other contract food service' under SAC 996337, attracting 18% GST as per Notification No. 11/2017-CT(Rate) dated 28.06.2017 amended by Notification No. 20/2019-CT(Rate) dated 30.09.2019.

This summary provides a detailed breakdown of the legal judgment, addressing each issue involved and the Authority's findings and ruling on the matter.

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