XYZ having a shop where they sale across the counter namkeen and sweetmeats. They also had a separate pani puri, shev puri counter in the same shop where people either eat the same by sitting on a cement platform made or take a parcel of the same.
1) Will the pani puri, shev puri counter fall under the category of “restaurant, eating joint including mess, canteen” as per Sr. No.7 of Notification No. 11/2017-Central Tax (Rate) and will attract 5% without ITC or
2) the normal Tariff Rate of pani puri, shev puri with ITC facility will get attracted?
GST Query: Shop Selling Namkeen and Sweetmeats Not Classified as Restaurant for 5% Rate Under Notification 11/2017. A query was raised regarding the Goods and Services Tax (GST) applicable to a shop selling namkeen and sweetmeats, which also has a separate counter for pani puri and shev puri. The question was whether this setup qualifies as a 'restaurant, eating joint including mess, canteen' under Notification No. 11/2017-Central Tax (Rate), attracting a 5% GST without Input Tax Credit (ITC), or if the normal tariff rate with ITC applies. The response provided indicated that, in the respondent's view, the setup does not fall under the specified category for the reduced GST rate. (AI Summary)
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