2020 (2) TMI 553

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....ality LLP, the applicant, seeking an advance ruling in respect of the following questions. 1. What would be the rate of tax applicable to the applicant providing restaurant services as per facts of the case mentioned? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further, henceforth for the purposes of this Advance Ruling, a reference to "GST Act" would means CGST Act/MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions of the ap....

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....cts of the case?" 2.5.1 Applicant has reproduced the relevant portions of amended Section 7 of the CGST Act, 2017 for understanding the applicability of GST on their services - 2.5.2. They have submitted that it is a well-established principle that food or beverages provided for consumption in a restaurant premises are a "supply". They have also submitted that as per Clause 6, Sub-clause (b) of Schedule II the supply of food or drink (other than alcoholic liquor for human consumption), which is supplied whether as a service or otherwise, for cash or other consideration, is a supply of services under GST Laws. 2.5.3 Applicant has further reproduced the relevant entries in Sr. No. 7, Notification No. 11/2017-CT(Rate) dated 28th June,....

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....usion/Advance Ruling/ 145/2019/13374 dated 13.11.2019 is as under:- a. The restaurant operated by the applicant is in the same premises as that of the hotel, JW Marriot. b. The restaurant is a part and parcel of the JW Marriot Hotel/Hotel premises and cannot be treated as independent of JW Marriot. c. The conditions required, to be eligible for lower rate of GST i.e. 5%, are not fulfilled by the applicant. d. The applicant has already discharged GST liability @ 18% as is seen from their returns filed for the period July, 2017 to June, 2019. They have also availed ITC and utilized the same against their GST liability. The jurisdictional officer has finally opined that the said rate of 18% is proper, leg....

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.... in the same premises having a common entry gate. We further find that there is an inter-connectivity to the arcade, where the applicant restaurant is situated, from the hotel and vice versa via a private passageway between the hotel and the arcade. There is no need to exit the hotel premises to enter the arcade and vice versa. Finally, we also take into account the oral submissions made by the applicant, during the course of the final hearing held on 12.12.2019, that the applicant's restaurant is primarily meant for the clientele of the hotel under the brand name "JW Marriott" being operated on the same plot. The applicant has stated that the owner of the mall 'THE ORB' is looking to primarily service the customers of JW Marriot Hotel who ....