TaxTMI 
TaxTMI 
2026 (5) TMI 337
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....ppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. Friends Catering CBE No. 172-175, Sarojini Street, Ramnagar, Coimbatore - 641 009 (hereinafter called as the "Applicant") are registered under the GST Act with GSTIN 33AAHFF4730D1ZW. The applicant informed that they are engaged in providing outdoor catering services that do not involve hotel accommodation and are not located in any specified premises. Their services include two distinct categories of supply: • They provide composite outdoor catering services that involve both the supply of prepared food and deployment of manpower for serving and on-site event support. • They also underta....
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....anation under Entry (vi) clarifies that the services covered by Entries (ii), (iii), (iv), and (v) will attract the respective GST rates prescribed for each category, subject to the conditions outlined in those entries. The applicant also includes that for the purpose of GST, the term "outdoor catering" includes services provided at venues such as exhibition halls, events, conferences, marriage halls, and other similar locations for occasional and event-based functions, whether held indoors or outdoors. Interpretation of Law by the Applicant based on the statement of facts: 5.1 On interpretation of law, the applicant has stated that their services fall within the meaning of "outdoor catering" as defined in the notification, and are carried out at premises that are not "specified premises", by a person who does not provide hotel accommodation and is not located in specified premises. The applicant opined that Entry (iv) prescribes a concessional rate of 5% GST (2.5% CGST + 2.5% SGST), subject to the condition that ITC is not availed. It is not an unconditional mandatory rate, as the applicability is conditional upon non-availment of input tax credit and Entry (vi) provides for....
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....ed by them. The Members informed the AR that mere preparation of food for outward supply is also a supply of service as per Schedule II of the CGST Act, 2017, to which the AR agreed. When the Members asked about the present tax rate adopted by the applicant, the AR replied that they tax at the rate of 18% and avail Input Tax Credit (ITC) wherever supply of food, transportation and serving is involved and tax 5% without availing ITC whenever only food is prepared without involvement of transportation or any other service. The Members also asked the AR to provide a write up on the present practice adopted by the applicant in case of both the models of supply of food along with sample copies of invoices. The AR undertook to provide the write up at the earliest. Discussions and Findings: 7.1 We have considered the submissions made by the applicant in their application, copies of the relevant documents furnished by them, the submissions made during the personal hearing. We find that the applicant claims that they are engaged in providing outdoor catering services that do not involve hotel accommodation and are not located in any specified premises and that their services include t....
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....er Entry (iv), if they choose to forgo ITC, or to pay GST at 18% with ITC under Entry (vi), if they choose to avail ITC, whether or not involving Labour services. 7.4 At this juncture, it becomes imperative to ascertain as to whether the said activity of the Applicant, constitute a supply of 'goods', or a supply of 'service'. Schedule II to the CGST Act, 2017 lists the activities to be treated as supply of goods, or, supply of services. In this regard, we find that para 6 of Schedule II, which discusses about 'Composite supply' is relevant to the issue in question, and the same is reproduced below: "6. Composite supply: The following composite supplies shall be treated as a supply of services, namely :- (a) works contract as defined in clause (119) of Section 2; and (b) 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 any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration." 7.5 Section 2 (30) of the CGST Act, 2017 defines 'Composite Supply' as: "(3....
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....ble to be treated as a 'supply of service' as laid down in clause (b) to para 6 of Schedule II to the CGST Act, 2017. 7.9 Having held that both the models of supply of food adopted by the applicant amounts to 'supply of service', it becomes imperative to ascertain the classification of service in order to determine the taxability of the service involved. In this regard, we find that the Annexure to the Notification No. 11/2017-CT(Rate) dated 28.06.2017, as amended, lists the classification of services and the extract of the relevant Chapter, Section Heading or Group, is reproduced as under :- Annexure: Scheme of Classification of Services Sl. No. Chapter, Section Heading or Group Service Code (Tariff) Service Description 80 Group 99633 Food, edible preparations, alcoholic and non-alcoholic beverages serving services 996334 Catering Services in Exhibition halls, Events Marriage Halls and other outdoor/indoor functions. As per the submissions of the applicant, they provide catering services primarily for outdoor events held at various venues such as marriage halls, exhibition halls, and other similar locations for occa....
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.... 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. (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. (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 supply of time share usage rights by way of accommodation. 7.12 From the above, the following could be deduced, i.e., i. Restaurant service covers only the services provided by restaurant, mess or canteen, thereby, the activity undertaken by the Applicant i.e. supply of food on occasional basis would not be covered under 'restaurant service'. ii. It is quite obvious that the service in question, will not be covered under ....
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....is entry covers supply of 'hotel accommodation' having value of supply of a unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent. (d) This entry covers supply of 'outdoor catering', provided by suppliers providing 'hotel accommodation' at 'specified premises', or suppliers located in 'specified premises'. (e) This entry covers 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) provided by suppliers providing 'hotel accommodation' at 'specified premises', or suppliers located in 'specified premises'. 9 - 7.15 It could be seen from the above that the aforesaid entry 7(vi) which provides for tax at the rate of 9% (i.e., 18% overall including SGST), without any condition, starts with the phrase "Accommodation, food and beverage services other than (i) to (v) above". Accordingly, having held already that the services rendered by the applicant gets covered under entry SI.No.7(iv), the question of application of entry SI.No.7(vi) to the instant case, does not arise at all. Apa....