TaxTMI 
TaxTMI 
2026 (5) TMI 698
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....y correct? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the OGST Act. 2.0 Submission of the Applicant: 2.1 M/s Harjit Hotel & Shopping Private Limited [here-in-after referred to as "the Company / Applicant"] is engaged in providing Hotel & Restaurant Services and is registered under GST Act. 2.2 That, the maximum rate of tariff at the Hotel of the applicant is less than Rs. 7500/-. The applicant while providing its Restaurant Service both to its in-house customers as well as the outside customers who are visiting the Restaurant, charged GST @ 5% (i.e. CGST @ 2.5% & SGST @ 2.5%) as per Notification 46/2017-Central Tax (Rates) dated 14.11.2017 on the invoices of Service Charges. 2.3 The applicant while serving food at the Restaurant, the Server / waiter at the Restaurant while taking orders from the customers, as a ritual ask the customers about their preference about the drinking water i.e. whether the....
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.... Revenue was not present on the date of personal hearing. The applicant has also submitted additional submission vide letter dated 10.09.2025. Discussion & findings 6.0 We have gone through the advance ruling application, question on which advance ruling has been sought and the Applicant's interpretation of law and/or facts, as the case may be, in respect of the question asked. 6.1 On going through advance ruling application, it is observed that, applicant sought advance ruling on classification on the following question: "Whether levying GST@ 5% (SGST @ 2.5% and CGST @ 2.5%) on the invoice amount which includes the foods as well as the packaged drinking water bottle (the rate of which more than the MRP printed on the bottle) as ordered by the customers treating the entire transaction as providing Restaurant Service is legally correct? 6.2 We find that applicant is a registered person under GST Act bearing GSTN: 21AABCH5419C1Z9 and involved in supply of "Hotel & Restaurant Service". The maximum rate of tariff per room at their Hotel is less than Rs. 7500/- per night. The Applicant offers Restaurant Service to both in-house customers as well as outside customers....
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....consumption), where such supply or service is for cash, deferred payment or other valuable consideration. The above Schedule, the CGST Act, 2017 put the composite supply of Restaurant Service in the category of Service even though it is a composite supply based on its nature of supply. Hence, it can be said that, the Restaurant Service shall be treated as supply of service for the purpose of levying GST. Coming to definition of Restaurant Service, It has been defined in Notification No. 20/2019-Central Tax (Rate) dated 30.09.2019 which reads as: "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." From the above definition of Restaurant Service, we are of the view that, any drink that has been provided by the Restaurant along with other items i.e. food or any other article for human consumption, find a place in the above inclusive definition. Hence, supply of "Packaged Drin....
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....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), which is a mandatory rate and shall not be levied at the rate as specified under this entry. (b) This entry covers supply of "restaurant service" at "specified premises" (c) This 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, panda....
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....een done away with from 01.04.2025 onwards. The definition of specified premises has been changed. For the period prior to 01.04.2025, "specified premises" meant 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. From 01.04.2025, the definition of "specified premises" for a financial year includes any of the following. A. Price-based criteria: Any premises where hotel accommodation services were provided in the previous financial year, with price exceeding seven thousand five hundred rupees per unit per day for any unit of accommodation. B. Voluntary declaration by the existing suppliers: Any premises for which a registered hotel service provider declares his premises as "specified premises" between 1st January and 31st March of the preceding financial year. C. Declaration by new applicants: Any premises which has been declared as "specified premises" by a person applying for registration within 15 days of receiving the acknowledgement for his application of registration. In short, a premises automatically qualifies as "specified pre....
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....tion during the previous Financial Year. The applicant vide letter dated 10.9.2025 submitted their clarification wherein it is evident that, the unit accommodation of the applicant's hotel during the previous Financial Year was less that Rs. 7500/-. In view of the above, the applicant premises would not fall under the category of Specified premises as the tariff is below Rs. 7500/ -. Hence, the applicant is liable to discharge GST @ 5% (CGST: Rs. 2.5% & SGST Rs. 2.5%) for the supply of Restaurant Service Provided that credit of input tax charged on goods and services used in supplying the service has not been taken. Since, the term "any drink supplied" finds the place in the inclusive definition of Restaurant Service as discussed above and the value of the "Packaged Drinking water" form part of the transaction value of Restaurant Service as per above definition of "Restaurant Service", we have already arrived at the considered conclusion that,, GST on supply of "Packaged Drinking water" along with other food items at the applicant's Restaurant shall be levied @ 5% (CGST: Rs. 2.5% & SGST Rs. 2.5%) provided that credit of Input Tax charged on goods and services used in supplying t....