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

Seating facility as service may convert bakery sales into taxable service treatment, risking dispute if treated as goods.
Provision of seating, ambience and related on-premises conveniences at a bakery constitutes a service element distinct from sale of goods; while takeaway is ordinarily sale of goods, GST Council guidance and Advance Rulings indicate takeaway may be treated similarly to on-premises consumption, so treating seating and associated amenities as a taxable service is the safer compliance position to avoid departmental dispute.