TaxTMI 
TaxTMI 
2026 (5) TMI 564
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....thin the meaning of that term. BRIEF FACTS Applicants Background: The applicant M/s. Cremeux Bakeries Private Limited, having its office at CMM Arena Complex, 2nd Floor, Vaddy, Merces, Toswadi, North Goa 403005, is a registered taxable person and holds GSTIN 30AAFCC2111E1ZO. The Applicant is engaged in the business of manufacturing food products like cakes, pastries, sandwiches, savories, biscuits bread etc. in respect of which the applicant is seeking clarification through the advance on the following questions. CLARIFICATION REQUIRED ON THE BELOW POINTS: 1. Whether the sale of bakery products such as cakes, pastries, sandwiches, savouries, biscuits, slice cakes, bread, rusk and other ready-made items, which are fully manufactured at the Corlim factory and sold through bakery outlets without any cooking, preparation or processing, constitutes a supply of goods under GST? 2. Whether preparation and sale of semi-finished goods such as pizzas at the outlets, wherein pizza base and toppings are supplied from the factory and are blended/prepared at the outlet upon customer order, constitutes restaurant service? 3. Whether the Applicant is permitted under GST Law an....
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....-GST dated 06.10.02021 (attached), which clarifies that: Sale of pre-manufactured food items without nay cooking or preparation amounts to supply of goods The Applicant's case is fully covered by the said Circular. (2) Preparation of semi-finished goods - Supply of Restaurant Service Preparation of pizza involves cooking and service elements at the outlets. Covered under Entry 3 of CBIC Circular No. 164/20/2021-GST Classified as restaurant service under Heading 9963 (3) Dual treatment of goods & services supplied. Supply of goods and supply of services can co-exist in the same premises • Taxability depends on the nature of individual item supplied • Ready-made items attract GST as goods • Prepared/ cooked food attracts GST as restaurant service. Reference is also drawn to ruling of the Hon'ble Gujarat AAR in Riddhi Enterprises (confirmed by both AAR and AAAR enclosed) categorically held that dual tax treatment is permissible, provided the nature of supply is determinable item wise. The applicant taxpayer has relied on Circular No. 164/20/2021-GST and Circular....
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....the Corlim factory and sold through bakery outlets without any cooking, preparation or processing, constitutes a supply of goods under GST? 2. Whether preparation and sale of semi-finished goods such as pizzas at the outlets, wherein pizza base and toppings are supplied from the factory and are blended/prepared at the outlet upon customer order, constitutes restaurant service? 3. Whether the Applicant is permitted under GST Law and basis the principles laid out in circular 164-para 3 and para 4 to 1. charge GST as goods for items sold without preparation, and 2. Charge GST as services for items involving preparation/ cooking subject to maintain a separate billing series, accounting records etc.? We are of the considered opinion, that in the facts and circumstances of present case, the clarification issued vide Circular No. 164/20/2021-GST dated 06/10/2021 on this issue would be relevant. Para 3.3 to 4.2 of said Circular reads as under. "3.3 The explanatory notes to the classification of service state that "restaurant service" includes services provided by Restaurants, Cafes and similar eating facilities including takeaway services, ro....
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....za, pasta, salads, shakes, etc. which are cooked/prepared/made/blended at restaurant premises, same are to be treated as supply of 'restaurant service' irrespective of whether customer consumes them on restaurant premises or takes away. As regards the query of applicant as to whether applicant can charge such two separate gst rates at the same premises, we do not find any legal impediment under GST Law which prohibits a registered taxable person from carrying on the business of restaurant service and supply of goods as a Trader from the same place of business. Hence, the applicant taxpayer may adopt such different gst rates but it shall be the duty of taxpayer to maintain a clear separate record of turnover of outward supplies on account of restaurant services and separately turnover on account of supply of goods. Hence, the taxpayer will be required to maintain separate series of tax invoices for better clarity as the taxpayer will be under legal obligation to comply with all provisions of GST Law particularly in respect of reversal of input tax credit on inward supplies of inputs and input services. This will pose a serious challenge for practical accounting purpose....