TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 1102
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....e 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 which advance ruling is sought from your honour. Nature of....
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....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. (xxxiv) 'Hotel accommodation' means supply, 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 ....
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....oviding '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% (2.5% CGST and 2.5% SGST) on the consideration received from the NTPC because a.) the service rendered as mentioned in the submission to question 1 as above attracts GST @ 5% (2.5% CGST and 2.5% SGST); b.) the service is provided by the applicant to the recipient and the fact that the meal, snacks, tea et....
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....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 shall be treated as supply of service. 2. The rate of tax applicable for providing such services on consideration received from NTPC should be 5% (2.5 CGST and 2.5% SGST) as per serial number 7(iv) of notification number 11/2017 - Central Tax (Rate) as amended by notification number 20/2019-Central Tax (Rate) provide that credit of Input tax charged on goods and services used in supplying the servic....
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....ta 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 items at the rates and quantities as decided. * As per S. No. 9 of the above-said P.O., the canteen premise has been provided to the applicant by NTPC, Anta on nominal rent of Rs. 1/- per month. * As per S. No. 10 of the above-said P.O., NTPC shall provide furniture required in dining hall (dining table with seats). * As per S. No. 11 of the above-said P.O., NTPC will make electricity available free of cost in canteen for cooking, heating, refrigerators, lights and other fixtures. * As per S. No. 16 of the above-said P.O., the c....
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....foresaid 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 applicant is covered under 'Supply' as defined under Section 7 (1) of the GST Act, 2017 which is as under- (1) For the purposes of this Act, the expression "supply" includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; Here, we are of the view that activity of supply of manpower service for running & maintenance of the canteen for consideration in the course of business is covered under 'supply' as per section 7 of the CGST Act, 2017 and liable to tax as per section 9 of the CGST Act, 2017. Further, this service i....
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....equired 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 Explanation no. (iv)]. (iii) Support services other than (i) and (ii) above. 9 - Thus, we concluded that the service provided by the applicant is neither classifiable as 'Restaurant Service' nor 'Outdoor Catering Service', rather it is classifiable as 'Temporary staffing services' under heading No. 998514 and attracts GST @ 18% (9% CGST+9% SGST) as per S. No. 23 (iii) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 (as amended). 3. Now, we are required to discuss the second question of the applicant which is related to applicable tax rate on the supply made by the applicant. In this regard, we are of the view that in the instant case supply made by the applicant is classifiable under Chapter, Section or Heading 998514 under SI. No 23(iii)....
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.... 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 catering' together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) 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)] (vi) Accommodation, food and beverage services other than (i) to (v) above Explanation.- (a) For the removal of doubt, it is hereby clarified that, supplies covered by items (ii), (iii), (iv) and (v) in column (3) shall attract central tax prescribed against them in column (4) subject to conditions specified against them in column (5), ....
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....e 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 arc event based and occasional in nature. In view of above legal position, in the present case the canteen is not located in any premises having 'hotel accommodation' services. Rather is it situated at premises of NTPC on a contractual agreement on rent. Hence the case of the applicant is not covered in exclusion in respect of item (ii) of serial number 7 of the table of the said notification No. 11/2017-CT(R) dated 28.06.2017. As far as relevancy of "Outdoor catering" in respect of applicant's services is concerned, it crystal clear that the supply being undertaken by the applicant is not event based or occasional in nature which is evident from the agreement which provides for the operation of the agreement for a period of 10 months. Hence, we find that activities of selling articles for human consumption at pre-decided rates to the employees of the recipient at canteen of NTPC, Anta b....