Taxability of Juice Centres

[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.

[Guest]

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

GST on Juice Centers: 12% for fruit juice sales; 5% if seating/service is provided, no input tax credit. A query was raised regarding the taxability of juice centers selling only fruit juices under GST, questioning whether they are exempt or taxed at 5% like restaurants, and their status under previous tax regimes. One response clarified that fruit juices fall under Chapter/Heading No. 2009, attracting a 12% GST, with a small-scale exemption of 40 lakhs. It was noted that since it is a sale, it does not attract service tax. Another response argued that juice centers providing seating and serving juice might be considered a service under Schedule II of the CGST Act, potentially leading to a 5% tax rate without input tax credit.