TaxTMI 
TaxTMI 
2018 (9) TMI 1335
X X X X Extracts X X X X
X X X X Extracts X X X X
....or Goodwill) is registered under GST vide registration No. 33AHPPB9234KIZ5. The applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/each under sub-rule (1) of Rule 104 of CGST rules 2017 and TNSGST Rules 2017. They are Industrial caterers. The applicant has sought advance ruling to know the applicable percentage of GST to their business. 2. The Applicant has stated to render catering services to various companies. They prepare food in their place and supply to the employees of their clients/companies. The said companies provide them the rent free space to distribute the food to the employees of the companies. They purchase materials and use their own manpower in cooking and distributing food. The applicant has submitted that, on interpretation of Notification 11/2017CT(R) dated 28/06/2017 as amended, they assume that GST for the catering services rendered by them is 5%. 3. The Authorised Representative of the Applicant was personally heard in the matter on 08.05.2018. In the first hearing, the Applicant submitted, that they enter into contracts with companies on whose ren....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nder 7(i) of Notification No. 11/2017 dated 28.06.2017 or under 7(v) of the said Notification. The relevant extracts and the changes these entries underwent are detailed below: 5.1 Notification 11/2017-C.T. (Rate) dated 28th June 2017 provides the rate of various services under GST. The relevant rate extracts are as follows: 7 Heading 9963 (Accommodation food and beverage services) (i) 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 drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, neither having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year nor having licence or permit or by whatever name called to serve alcoholic liquor for human consumption. 6 - (v) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption),....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ring and 5% on restaurant. The Secretary stated that this proposal would not be acceptable to the trade. The Hon'ble Minister from Assam did not support this proposal and stated that this would lead to increase in prices. 65.29. Keeping in view the discussion as above, the Council agreed to apply tax rate of 5% tax without input tax credit on all standalone restaurants and a rate of tax of 18% with input tax credit on a restaurant in a hotel having room of declared tariff of more than Rs. 7,500 per night. The take-away food from a restaurant shall have similar tax treatment as that for the restaurant. Outdoor catering shall, however, attract tax at the rate of 18% with input tax credit and there would be no change in Composition scheme for restaurant. Accordingly, Notification No. 11/2017 CT (Rate) was amended vide Notification No. 46/2017 dated 14th November 2017 as below: (ii) against serial number 7,- (a) for item (i) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely:- (3) (4) (5) "(i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food....
X X X X Extracts X X X X
X X X X Extracts X X X X
....self as a 'restaurant' has been discussed and the decision to lower the tax rate only to restaurants has been taken by the council. Therefore, the supply of food by the applicant in the premises of client, whether prepared in that place or brought and served is more appropriately covered by the description at Sl.No. 7(v) of the Notification No. 11/2017 -C.T. (Rate) dated 28.06.2017 and is liable to tax at 9% CGST and 9% SGST. 5.3 GST Council in the 27th Council Meeting held on 4th May 2018, discussed and on 21.07.2018, the following decision as given in the press note was taken and the same is reiterated below: 18. Rationalize entry relating to composite supply of food and drinks in restaurant, mess, canteen, eating joints and such supplies to institutions (educational, office, factory, hospital) on contractual basis at GST rate of 5%: and making it clear that the scope of outdoor catering under 7(v) is restricted to supplies in case of outdoor/indoor functions that are event based and occasional in nature. To effect the above decision of the Council, the Notification No. 46/2017 was amended vide Notification No. 13/2018 dated 26th July 2018 as follows: In the s....