AI Drafter 
TaxTMI 
TaxTMI 
2023 (5) TMI 228
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....es of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- under SGST and Rs. 5,000/- under CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided nor are pending before any authority under any provisions of the CGST/TGST Act' 2017. The application is, therefore, admitted after examining it and the records called for and after hearing the applicant as per section 98(2) of TGST Act' 2017. 4. BRIEF FACTS OF THE CASE: 4.1 The applicant M/s. Foodsutra Art of Spices Private Limited is providing canteen services to ITC limited. The applicant has submitted that they have been issuing the invoices for their regular Canteen services @ 5%. Apart from that, they are also receiving a Lump Sum amount of bonus for paying their employees from their service recipient (i,e., they're compensating them in this form ) , for that they are charging @18%. But, that their se....
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....e personal hearing held on 24.01.2023. 1. The Authorised Representative reiterated the contentions already submitted along with the application and requested for early disposal of the case. 2. Further, the Authorised Representative/Applicant M/s. Foodsutra Art of Spices Private Limited, Hyderabad, reiterated that their case /Similar Case is not pending in any proceedings in the applicant's case under any of the provision of the Act and have not already decided in any proceedings in the applicant's case under any of the provisions of the Act. Opinion expressed by Sri S.V. Kasi Visweswara Rao, Additional Commissioner (State Member), on the issues raised by the applicant. 7. DISCUSSION & FINDINGS: The applicant is receiving regular amounts for the bills raised by them on the canteen services and annually they are receiving further amounts with the nomenclature of bonus. Under the Section 9(1) of the CGST Act, 2017 "...there shall be levied a tax called the Central Goods and Services Tax on all intra-State supply of goods or services or both..., on the value determined under Section 15..." The Section 15 of the CGST Act, 2017 at clause (b) of sub sectio....
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....? 2.5% CGST & 2.5% SGST. 2. Whether they have to charge same GST rate as applicable for their main service of Canteen Service also for bonus reimbursement Yes. 3. If they have to charge the same GST rate as like Canteen Service, please specify the provision, on what basis they have to charge 5%, instead of 18 %? Please see the discussion above. Opinion expressed by Sri Sahil Inamdar, Additional Commissioner, (Central Member), on the issues raised by the applicant are as given below. 9. DISCUSSION & FINDINGS: 9.1 The applicant is receiving regular amounts for the bills raised by them on the canteen services and annually they are receiving further amounts with the nomenclature of bonus. 9.2 Under the Section 9(1) of the CGST/TGST Act, 2017 "(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and co....
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.... or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply; Similarly, the definition of consideration at sub section 31 of Section 2 of CGST/TGST Act, 2017 includes any payment made or to be made in response to the supply of goods or services. 9.5 A combined reading of Section 15 and definition of consideration in the CGST/TGST Act, 2017 reveals that all payments made in respect of a supply constitutes the value of supply on which tax shall be levied under the charging section i.e., Section 9 according to the rates applicable in the notifications issued under the Act. 9.6 Ac....
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....ies relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; [Explanation.-- For the removal of doubts, it is hereby clarified that the expression ―services includes facilitating or arranging transactions in securities;] 9.10 The applicant's point of view is that, they are taking the bonus consideration from service recipient which is meant to be paid to their employees, by acting as an intermediary, because of which they are issuing Invoice, for the bonus amount to be received, with GST Rate of 18%. If the applicant retains a portion of the Lump Sum amount received for payment of bonus, which is received from their service recipient to pay the same to their employees, in the form of commission then he is liable to pay GST at the rate applicable to Intermediary services on the commission retained and rest of the amount, after excluding the commission from the bonus, shall be included in the taxable value pertaining to the canteen services as the bonus is also paid by the service recipient in relation to the canteen s....