AI Drafter 
TaxTMI 
TaxTMI 
2022 (7) TMI 1102
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.... Cooperative Society Limited, Indian Coffee House, NTPC, Anta, Distt-Baran-325202, Rajasthan -(hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under: (a) Classification of any Goods or Service or Both As Per declaration given by the applicant in Form (ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION OF THE APPLICANT:(in brief) M/s Indian Coffee Workers' Cooperative Society Limited, Indian Coffee House, NTPC, Anta, Distt-Baran-325202, Rajasthan (Applicant) is engaged in providing services relating to supply of food to the employees of NTPC Anta at the premises rented from them. The applicant seeks mainly, amongst others, the classification under which the services provided by it are to be covered for the purpose of taxation under GST. A brief note on the nature of activity undertaken by the applicant is hereunder provided before getting into the submissions regarding applicant's understanding of the questions on wh....
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....as below: (xxxii) "Restaurant service" means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied. The said notification also defines the 'outdoor catering' service (which is mentioned at item (iv) of serial number 7 of the table of the said notification) as below: (xxxiii) "Outdoor catering" means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature. The said notification further defines the 'Specified premises' and 'Hotel accommodation' as below: (xxxvi) 'Specified premises' means premises providing 'hotel accommodation' services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent. (xxxi....
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....Table to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 attracting GST @ 5% (CGST:2.5% + SGST: 2.5%). The item (iv) reads as - "Supply of 'outdoor catering', at premises other than 'specified premises' provided by any person other than - (a) suppliers providing 'hotel accommodation' at 'specified premises', or (b) suppliers located in 'specified premises'." Again, they undertake to not take input tax credit as is the pre-condition to get covered by the said item (iv). It was held by the Gujarat Authority for Advance Ruling in the ruling order no. GUJ/GAAR/R/18/2019 in the case of Gurukrupa Hospitality Services that the services provided by the applicant were covered in item (i) of serial no.7 as amended by the notification no. 13/2018 Central Tax (Rate) dated 26.07.2018 which is - in principle - similar to the present item (ii) of serial no.7 as amended by the notification no.20/2019. Question 2. Whether the rate of tax applicable, for providing such services, on consideration received from NTPC is 5% (2.5% CGST and 2.5% SGST)? Submission: In the understanding of the applicant the rate of tax applicable should be 5....
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....NTPC is 5% (2.5% CGST and 2.5% SGST)? Question 3. Whether the rate of tax applicable, for providing such services, on consideration received in the form of sale of food items to the employees/workers/others is 5% (2.5% CGST and 2.5% SGST)? Question 4. It any/all of (he above three questions are not answered by your goodself in affirmative or are answered otherwise (hen please provide the correct nature of service and the rate of tax applicable. C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 11.05.2022 & 25.05.2022. On behalf of the applicant CA, Priyank Kabra (Authorised Representative) appeared for PH. During the PH, he reiterated the submissions already made in the application. D. COMMENTS OE THE JURISDICTIONAL OFFICER The Dy./Assistant commissioner, State Tax, Commercial Tax Department, Circle-Baran has submitted his comments vide letter dated 21.03.2022 which are as under : 1. Yes, the service provided by the applicant is classifiable as outdoor catering services (HSN Code 9963) according to the entry for schedule II the supply of food by way of or as a part of any services or even in any other manner what over shal....
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....he applicant, we find that M/s Indian Coffee Workers' Cooperative Society Limited, Mumbai is engaged in providing services for running and maintenance of plant canteen at NTPC, Anta, Rajasthan at the premises rented by NTPC, Anta. In this regard, the applicant entered into an agreement dated 18 October, 2021 with NTPC, Anta vide Service Purchase Order No. 4600067256-017-1013 dated 28.09.2021 for running and maintenance of plant canteen at NTPC, Anta for the period from 01.09.2022 to 30.06.2022 (Ten Months) having contract value of Rs. 68,45,452/-. As per 'Bill of Quantity', break up of contract value is as under: S. No. Staff Nos. Amount (Rs.) 1 Manager 01 67,30,477.30 2 Counter Clerk 02 3 Cook 02 4 Asst. Cook 02 5 Sr. Bearer 01 6 Bearer 08 7 Cleaners 03 8 Total (A) 19 9 GST liability Plant Canteen Food Items (B) 1,14,975.00 10 Total amount (A+B) 68,45,452.30 The important Scope of Work/features of Service Purchase Order dated 28.09.2021 are as under: - • As per S. No. 7 of the above-said P.O., the contractor shall supply the standardized item....
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.... is paid by the NTPC for running and maintenance of canteen. NTPC has agreed to pay a fixed monthly amount to the applicant with the conditions as mentioned in Service Purchase agreement. 2) Balance is recovered from those procuring food from the canteen. As per the agreement with NTPC, amount at which the applicant has to provide food items to the persons procuring them is decided among the applicant and the NTPC. The amount is then recovered from the food-procurers. From the above facts, we observe that on the behalf of M/s Indian Coffee "Workers' Cooperative Society Limited, Mumbai, Shri K. B. Sanjayan, Manager, M/s Indian Coffee House, NTPC, Anta, Rajasthan has acknowledged the aforesaid Service Purchase Order by making signature as Authorised Signatory over it in token of acceptance of the same. Further, on perusal of 'Bill of Quantity' and S. No. 16, 21 & 24 of the Service Purchase Order dated 28.09.2021, it is find that applicant has provided manpower i.e. Manager, clerk, cook, cleaner, helper etc. for running & maintenance of the canteen at NTPC, Anta for a consideration amounting to Rs. 68,45,452/- for a period of 10 months. The activity undertaken by the appli....
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.... Explanation.- 'tour operator" means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours. 2.5 1. Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour. "(ii) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. 2.5 Provided that credit of input tax charged on goods and services has not been taken [Please refer to Expla....
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.... 20/2019-CT(R) dated 30.09.2019 and the relevant extract of the said notification (as amended) for the present issue is reproduced as under: Sl.No. Chapter, Section or Heading Description of Service Rate (%) Condition 7 Heading 9963 (Accommodation, food and beverage services) (i) Supply of 'hotel accommodation having value of supply of a unit of accommodation above one thousand rupees but less than or equal to seven thousand five hundred rupees per unit per day or equivalent. 6 - (ii) Supply of 'restaurant service' other than at specified premises 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation No. (iv)] (iv) Supply of 'outdoor catering', at premises other than 'specified premises' provided by any person other than- (a) suppliers providing 'hotel accommodation' at 'specified premises or (b) suppliers located in 'specified premises 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation (iv)] (v) Composite supply of 'outdoor ca....
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....s supplied. The only exclusion from the entry 7(ii) is supply of such service at 'specified premises'. In the notification No. 11/2017-CT(R) dated 28.06.2017 at explanation No. (xxxvi) the "specified premises" defined as under: (xxxvi) "specified premises" means premises providing "hotel accommodation " services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent. Further, at explanation No. (xxxiv) the "Hotel accommodation" defined as under: (xxxiv) 'Hotel accommodation' means supple, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage rights by way of accommodation. The said notification also defines the 'outdoor catering' service (which is mentioned at item (iv) of serial number 7 of the table of the said notification) as below: (xxxiii) "Outdoor catering" means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink., at Exhibition Halls, Events, Conferences, Marriage Halls and o....