In Re: M\/s. Sodexo Food Solutions India Private Limited
GST
2018 (10) TMI 1052 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMI
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
11\/AAR\/2018
GST
Ms. Manasa Gangotri Kata, Member, And Thiru S. Vijayakumar, Member
\nORDER
\nNote: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT\/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated
\nAt the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax 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 Service Tax Act would also mean a reference to the same provisions under the<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n egal entities, Sodexo Foods Solutions India Private Limited (hereinafter referred to as applicant), Sodexo Facilities Management Services India Private Limited, and Sodexo Technical Services India Private Limited (collectively referred to as 'Sodexo India). Sodexo is interalia engaged in providing the following services: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n er 2017, entry no. 7 (i), there has been a change in the GST rate from 18% to 5% with effective from 15th November 2017, in respect of supply of food and \/ or beverages by restaurant, eating joint including mess, canteen other than those located in the premises of having rooms with declared tariff of Rs. 7,500 per day or more. Accordingly, the implication of such amendment in the GST rate for services provided by a restaurant, eating joint, including mess canteen which do not have rooms with declared tariff of Rs. 7,500 or more per day has been reduced to 5% (with no input tax credit to the service provider). Further, the CBEC (TRU) has issued circular no. 28\/02\/2018-GST dated 8th January 2018 stating that a canteen of an educational institution which supplies food and beverages to students and staff should be covered under 5% GST rate, even if the canteen is outsourced to an outside contractor. Further, by way of a corrigendum to this dated 18 January 2018. the CBEC (TRU) has clarifie<\/p>\n = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rants, eating joints, mess and canteens and the 18% GST rate for outdoor catering services seems to be simultaneously prescribed. Especially when the customers are not entitled to avail ITC of the GST charged by Sodexo, the clients are insisting that since the services are provided in canteens the appropriate rate of tax is 5%. Sodexo has a huge interest in knowing the correctness of the rate to be charged since GST is a pass through tax and the differential of 13% if not received from clients could spell disaster for the company. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n idered as a case of sale of food and drink as in restaurant”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n f appears to have clarity and even an unintended overlap stands avoided. It is a well settled principle of interpretation that in case of competing entries, specific would prevail over general and consequently canteen even if held to be outdoor caterer would continue to fall under 7 (i) instead of getting it consigned to 7 (v) of the Notification. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n claimed that in view of the above, it would be critical to clarify that supply of food and beverages in factory canteens, offices, hospitals, offshore rigs by services providers such as Sodexo should also attract 5% GST so that there is no discrimination in the GST tax structure for supply of food and drinks in the normal course of trade, commerce and intercourse across the territory of India. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Sodexo Food Solutions India Private LimitedGST2018 (10) TMI 1052 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMIAUTHORITY FOR ADVANCE RULING, TAMILNADU – AARDated:- 27-9-201811\/AAR\/2018 GSTMs. Manasa Gangotri Kata, Member, And Thiru S. Vijayakumar, Member ORDER Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate … Continue reading “In Re: M\/s. Sodexo Food Solutions India Private Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14542","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14542"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14542\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n * B2B contracts with corporate customers for operation and management of canteens, cafeteria's at their premises, wherein sodexo provides the services of cooking, preparing, serving of food and beverages at the premises of the customer; The consideration for services is charged to the corporate customers on a per plate basis; The contracts are for providing services on an ongoing basis for an agreed duration which could range from 1 years to 5 years, depending on the terms agreed with the corporate customer on a case to case basis.
\n * Retail services of cooking and serving food and beverages by canteens, cafeteria, etc. wherein Sodexo is engaged in sale of f<\/p>\n
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\n2.3 Sodexo have further stated that, in the normal course, “outdoor catering” means ordering of food along with service thereof on the occasion of some function etc, where the service provider would either bring the food and serve it at the customer's premises or prepare the food itself at the customer's premises and serve the same; Outdoor catering does not contemplate any continuous provision of service, but an occasional transaction whereas the te<\/p>\n
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\n2.4 Sodexo have further stated that on examining the classification of Food Services under the General Tariff Schedule under GST, it can be seen that Group 99633 deal with Food, Edible Preparations, Alcoholic and Non-alcoholic beverages serving services.; There are 8 sub categories under this group.; The First set comprising of 996331 to 996333 deal with services provided by Restaurants, café's, eating facilities including take away, room services and door deliver; Hotel, Inn, guest house, club and the like; canteen and other similar establishments.; These three sub entries feature food services dispensed on a regular basis from a fixed location where food is prepared and served.; It also includes services where food is prepared and served for a defined end use such as room services or door delivery. For the sake of convenience, sodexo defines this sub rule as indoor catering.; Sub entries 996331 to 996333 uses t<\/p>\n
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\n2.5 GST rate of 5% extended to Educational Institutions vide Circular of 8 Jan 2018 is violative of Article 301 of the Constitution of India. Circular No. 28\/02\/2018-GS'I' dated 8th January 2018 read with Corrigendum issued on 18th January 2018 has clarified that GST shall be applicable at 5% under entry 7 (i) on supply of food and drink in a mess or canteen, by anyone other than educational institution to the concerned educational institution. The entry 7 (i) covers supply of food and beverages by all types of canteens. Given that there is no differentiation in the taxable entry 7 (i) for canteens of educational institutions and can<\/p>\n
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\n3.0 The applicant was heard in person. They stated that they have contracts with various institutions.; they have contracts with them for making food at client premises; in certain cases, the payment is received from visitors to premises, in other cases payment is received only from the institutions. They provided a write-up and undertook to provide contract copies. The applicant furnished contract copies and invoices. The details and documents furnished were examined.
\n4.0 The applicant vide their letter dated 14\/08\/2018 have stated that the Government have issued Notification No. 13\/2018-Cent<\/p>\n
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