Whether Sweet Shop Comes under Restaurant

[Rajendra Prasad]

Dear Sir,

Whether Sweet Shop Comes under Restaurant Service.

Please inform the HSN code for Sweet Shop with Dining and Sweet Shop Without Dining.

Please clarify.

[Himansu Sekhar]

AAAR Uttarakhnad

Sale of sweets, namkeens, and other edible items from sweet shop counter will be treated as supply of goods with applicable GST rate of the items being sold and input credit will be allowed on such supply.

If it si with dining it will be a service.

[Rajendra Prasad]

Thank you sir for your kind reply.

[Himansu Sekhar]

Thank you sir

AI Summary

Sweet Shop Sales: Goods vs. Service Classification for GST; Dining Facilities Impact Tax Treatment A query was raised regarding whether a sweet shop qualifies as a restaurant service for GST purposes, and the applicable HSN codes for sweet shops with and without dining. The response clarified that the sale of sweets and similar items from a sweet shop counter is considered a supply of goods, subject to the applicable GST rate, with input credit allowed. However, if the sweet shop includes dining facilities, it is classified as a service. The discussion concluded with acknowledgments from the participants.