classification of supply

[Bharat Cholleti]

Dear Sir

In a Bakery there is eating facility some chairs and tables were kept if they wish they can eat then and there or it can be takeaway but there is no service of food sold in the bakery how to treat the supply either goods or service. mere eating facility does it constitute a service without being service.

In some other bakeries there is partial service and partial takeaway in a composition scheme can we charge 5% on service and takeaway @1%?

Please clarify.

AI Summary

Clarifying GST: Seating and Facilities in Bakeries Constitute a 5% Service Tax, Including Takeaways, Despite Potential Disputes. A discussion on the classification of supply for GST purposes in a bakery setting focused on whether providing an eating facility constitutes a service. The initial query questioned if seating arrangements without food service are considered a service and how to tax partial service and takeaway. Shilpi Jain clarified that providing seating and related facilities constitutes a service with a 5% GST liability. She suggested treating takeaways similarly, despite potential disputes. Kasturi Sethi agreed with Jain's views and referenced relevant rulings for further insight. The discussion emphasized the importance of aligning with GST Council intentions to avoid disputes.