2018 (5) TMI 1181 – AUTHORITY FOR ADVANCE RULING – GUJARAT – 2018 (13) G. S. T. L. 211 (A. A. R. – GST), [2018] 2 GSTL (AAR) 97 (AAR) – Rate of GST – applicant is having business of caterers and supply food, beverages and other eatables (non-alcoholic drinks) complete services at various places of their customers who have in house canteens at their factories – whether rate of tax on their supplies made to the recipient would be 12% or 18%? – applicability of Circular No. 28/02/2018GST dated 08.1.2018.
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Held that: – the service recipient has engaged the applicant for running of the canteen for their workers / employees. The rates for the meal, snacks, tea have been fixed and payable by the recipient. Menu is required to be decided by the canteen committee of the recipient. It is, therefore evident that the applicant, who is caterer, is providing service from other than his own premises to the recipient. Therefore, the nature of service provided by the applicant is that of outdoor
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2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 and Notification No. 11/201 7-State Tax (Rate) dated 30.06.2017, as amended, issued under the Gujarat Goods and Services Tax Act, 2017, attracting Goods and Service Tax @ 18% (CGST 9% + SGST 9%). – Advance Ruling No. GUJ/GAAR/R/2018/8 Dated:- 21-3-2018 – R.B. Mankodi (Member) and G.C. Jain (Member) Present for the Applicant : Shri Mehul P. Buch (Consultant) The Applicant M/s. Rashmi Hospitality Services Private Limited has submitted that the applicant is having business of caterers and supply food, beverages and other eatables (non-alcoholic drinks) complete services at various places of their customers who have in house canteens at their factories. The applicant -submitted that applicant normally charges GST @ 18% classifying their services under heading 9963 as outdoor catering.. 2. The applicant has submitted that one of the customer, who is recipient of services, has gi
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n of 'Outdoor Caterer' under Finance Act, 1994 was as under 'Outdoor caterer means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services. 3.3 The applicant further submitted that viewing the above clarification, it is admitted fact that statutory body have to provide food and beverage to their staff and the applicant is the outside contractor providing the service to statutory body, hence whether the above clarification is applicable to them, and what should be the tax rate before the said notification and after notification ? 4.1 The Goods and Services Tax and Central Excise Commissionerate, Kutch (Gandhidham) inter-alia informed that the question under consideration is whether the service provided by the applicant to the client is classifiable under chapter 996311 or otherwise and GST is applicable @ rate 12% or 18%. It is submitt
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18% is applicable on that service. 4.2 It is further submitted that as per contract made between the applicant and the client, the canteen space and all equipments have been provided by the client to the applicant and the applicant is only providing the services pertaining to Food, edible preparation service. It is opined by the Commissinerate that the activity carried out by the applicant appears to be in the nature of cooking of Foods and serving of foods along with edible preparations and it is classifiable as services provided in canteen and other similar establishments (Chapter Heading 996333). 4.3. It is further opined by the Commissionerate that as per classification of services provided vide Notification No. 11/2017-Central Tax (Rate) dated 28 06.2017, the activity carried out by the applicant appears to be in the nature of service provided in canteen and other similar establishments and also classifiable under Chapter Heading 996333 and GST @ rate of 18% is applicable on that
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pany would pay the applicant as per System / Manual Record availing Canteen meal. It is also agreed that the company would pay agreed rate per card punch for using the Normal Meal', per card punch for 'Special Meal', and would pay in cash per piece for snacks and per cup of Tea. It is also agreed that VAT & Service Tax would be paid extra, as applicable. It has also been stipulated that the menu would be decided by the canteen committee from time to time, which will consists of 'limited' and 'unlimited' items as stipulated in the agreement. 7.2 Sr. No. 7 of Notification No. 11/2017-Centra1 Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as. the 'CGST Act, 2017') and Notification No. 11/2017-State Tax (Rate) dated 30.06.2017, as amended issued under the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the 'GGST Act, 2017') provides different r
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rcial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation.- declared tariff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 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 no. (iv)].] (ii) ….. 6 – (iii)….. 9 -] (iv) * * * * * * *] (v) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for ca
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e activity undertaken by the applicant is in the nature of supply of service provided by a restaurant, eating joint including mess, canteen and covered by Sr. No. 7(i) of the Notification No. 11/2017-Central Tax (Rate) or it is in the nature of supply of service as a part of outdoor catering and covered by Sr. No. 7(v) of the Notification No. 11/2017-Central Tax (Rate). 8.2 On perusal of the copy of the agreement submitted by the applicant, it is evident that the service recipient has engaged the applicant for running of the canteen for their workers / employees. The rates for the meal, snacks, tea have been fixed and payable by the recipient. menu is required to be decided by the canteen committee of the recipient. It is, therefore evident that the applicant, who is caterer, is providing service from other than his own premises to the recipient. Therefore, the nature of service provided by the applicant is that of outdoor catering service. 8.3 Even though the meal, snacks, teas are pr
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ded by Hon'ble High Court of Allahabad in the case of Indian Coffee Workers' Co-Op. Society Ltd. Vs. CCE & ST, Allhabad [2014 (34) S.T.R. 546 (All.)], wherein it was held as follows – 8. Analyzing the provisions of clause (24) of Section 65 of the Finance Act, 1994, in order to be a caterer, a person should be one who supplies food, edible preparations, beverages (alcoholic or non-alcoholic) or crockery and similar articles or accoutrements for any purpose or occasion. The supply may be made directly or indirectly. Consequently, there has to be, firstly, a supply of food, edibles, beverages or crockery and similar articles or accoutrements. Secondly, this supply may be for any purpose or occasion. A purpose is an effectuation of a particular object. An occasion is an event defined with reference to time which may take place either as an isolated occurrence or be sporadic or periodical. Thirdly, the supply may be directly by the person himself or indirectly through anot
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ity of a canteen which is provided by NTPC or, as the case may be, by LANCO within their own establishments. NTPC and LANCO have engaged the services of the assessee as a caterer. The assessee is an outdoor caterer because the services which he provides as a caterer are at a place other than his own. The place is provided by NTPC and LANCO. The inclusive part of clause (76a) expands the definition to a place provided by way of tenancy or otherwise by the person receiving such services. NTPC and LANCO have engaged the services of the assessee as an outdoor caterer and the assessee is an outdoor caterer because services in connection with catering are provided by it at a place other than a place of the assessee. 10. Consequently, on a plain and literal construction of the provisions of Section 65(105)(zzt) read with the definitions of the expressions caterer and outdoor caterer as contained in clauses (24) and (76a), it is evident that the assessee is subject to the levy of Service
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ed under the CGST Act, 2017 / GGST Act, 2017 or the notifications issued there under. Nevertheless, the observations made in the aforesaid judgement of the Hon'ble High Court are relevant for deciding the present issue. In the said judgement, the Hon'ble High Court has observed that the taxable catering service cannot be confused with who has actually consumed the food, edibles and beverages which are supplied by the assessee. It is also held that the taxability or the charge of tax does not depend on whether: and to what extent the person engaging the service consumes the edibles and beverages supplied, wholly or in part. 9.3. In the present case also, the service of catering is provided by the applicant to the recipient and the fact that the meal, snacks, tea etc. are consumed by the workers / employees of the recipient would not alter the nature of service provided by the applicant. 10. In view of the foregoing, we rule as under – RULING The supply of services by M/s. Rashmi
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