Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 1-12-2018 – Zero rated supply The expression zero rated supply is defined under section 16(1) of Integrated Goods and Services Tax Act, 2017 as any of the following supplies of goods or services or both, namely:- export of goods or services or both; or supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. Issue The issue to be considered in this article whether supplying of food to the employees of the Unit situated in a Special Economic Zone amounts to supply under the definition of zero rated supply with reference to decided case law before the Appellate Authority for Advance Rulings in Merit Hospitality Services Private Limited – 2018 (11) TMI 335 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA – order No. MAH/AAAR/SS-RJ/12/2018-19, dated 01.11.2018. Facts of the case The appellant is providing catering services to the various corporate offices on regular basi
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Co-operative society for supply of food and not with the company. In the fourth case the appellant entered a contract with a company which has units in SEZ.The food is supplied to the employees of the Unit and the payment is received by the appellant from the employees. The appellant filed an application before the Authority for Advance Ruling raising the following questions- Whether the activity in the first case amounts to canteen services and GST @ 5% is applicable? Whether the supply of food and distribution of food to the employees amount to canteen service and GST rate @ 5% is applicable? Whether the supply of appellants amount to running a canteen? In respect of supply to the unit in a SEZ the following are the questions- Since the food is directly supplied by the appellant whether GST is not applicable? Whether the supply by the appellant amounts to running a canteen in a SEZ unit and GST is not applicable to such supply? Whether the appellant can claim the supply as a restaur
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re not furnished by the appellants as directed by the Authority. The Authority erred in quoting, relying and concluding his opinion based to his observations on the transactions in the domestic market with zero rated supply. Section 16(3) of the Integrated Goods and Services Tax Act, 2017 allows a registered person to make zero rated supplies without payment of tax subject to conditions, safeguards and procedures as laid out under Rule 96A of the CGST Rule. Ruling of the Appellate Authority The appellant only requested the ruling from the Appellate Authority for the supplies made to the unit in a SEZ and not for others. Personal hearing was afforded to the appellant by the Appellate Authority for Advance Rulings. The Appellate Authority for Advance Rulings analyzed the provisions of section16 (1) of the Integrated Goods and Services Tax Act, 2017. The Appellate Authority observed that the appellant is not supplying the food to the SEZ developer or to a SEZ Unit. The employees of the Un
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