Taxability of Juice Centres

[Asked by Guest]

What is the taxability of juice centre selling only fruit juices like Sugarcane Juice,Apple Juice,Mixed Fruit Juice and nothing else.Are they exempt or subject to tax at 5% like restaurants.

And,what was their taxability in service tax and VAT regime.

[KASTURI SETHI]

All fruit juices are classified under Chapter/Heading No.2009 and attract GST @12% (6% +6%). Small scale exemption of ₹ 40 lakhs is available. It is a sale and hence no ST.

Thanks Sir,

But won't it attract the provisions of Schedule II of CGST act which in part (b) of serial no. 6 states that"supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration." will be treated as a service.This will lead to it being taxed @ 5% without ITC.

Because in juice centres people come and sit in the centre and juice is served to them.So,it is a composite supply and as per schedule II it is to be considered as service.

AI Summary

Tax classification of juice sales: treated as goods attracting GST, though on premises service characterisation may alter treatment.
The respondent treats sales of fruit juices by juice centres as supplies of goods under Chapter 2009 attracting GST at the chapter rate and eligible for a small scale exemption, noting they were treated as sales (not services) under prior regimes. The questioner contends that Schedule II may recharacterise on premises supply or served food and drink as a service, potentially bringing the activity within the service/restaurant tax treatment and affecting input tax credit entitlements.