Dear Experts,
Need guidance on below-
The Company is into manufacture of food products like sandwiches, salads, fruit juices and vegetable juices.
It supplies these products in institutional packs to corporates & at times to cafes, supermarket for further sale.
What should be the applicable gst rate ?
1. Does it get covered under cloud kitchen and can take benefit of reduced rate of restaurant service. (5%)
2. Will it be taxed as ' pre packed & labelled ' @12%
3. Will it classify as ready to eat (HSN 2106) @18%
Will the opinion change if company supplies same in retail at a very small scale.
Thanks
Food Manufacturer's GST Rate Clarified: Ready-to-Eat Products Taxed at 18%, Not Cloud Kitchen 5. A company manufacturing food products like sandwiches, salads, and juices seeks guidance on the applicable GST rate. They supply these items to corporates, cafes, and supermarkets. The inquiry is whether these products fall under the cloud kitchen category with a 5% GST, as pre-packed and labeled at 12%, or as ready-to-eat at 18%. Expert responses indicate the products are classified as ready-to-eat with an 18% GST, regardless of scale or retail supply. The discussion highlights that the supply is of goods, not services, and advises comparing the transaction to cloud kitchen criteria. (AI Summary)
TaxTMI 
TaxTMI 
