SUPPLY OF FOOD TO THE EMPLOYEES OF THE UNIT IN \u2018SEZ\u2019 IS NOT ZERO RATED SUPPLY
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 1-12-2018<\/p>\n
Zero rated supply
\nThe 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:-
\n * export of goods or services or both; or
\n * supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
\nIssue
\nThe 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 01.11.20<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t company forms a 'Employees Co-Operative Society which is running a canteen for the employees.The appellant entered contract with the Co-operative society for supply of food and not with the company. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n proceeding the Authority erred in not deciding the rate of GST for the supply made by the appellants. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" SUPPLY OF FOOD TO THE EMPLOYEES OF THE UNIT IN \u2018SEZ\u2019 IS NOT ZERO RATED SUPPLYBy: – DR.MARIAPPAN GOVINDARAJANGoods and Services Tax – GSTDated:- 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 … Continue reading “SUPPLY OF FOOD TO THE EMPLOYEES OF THE UNIT IN \u2018SEZ\u2019 IS NOT ZERO RATED SUPPLY”<\/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-15312","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15312","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=15312"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15312\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n\tIn 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.
\nThe appellant filed an application before the Authority for Advance Ruling raising the following questions-
\n\tWhether the activity in the first case amounts to canteen services and GST @ 5% is applicable?
\n\tWhether the supply of food and distribution of food to the employees amount to canteen service and GST rate @ 5% is applicable?
\n\tWhether the supply of appellants amount to running a canteen?
\n\tIn respect of supply to the unit in a SEZ the following are the questions-
\n * Since the food is directly supplied by the appellant whether GST is not applicable?
\n * Whether the supply by t<\/p>\n
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\n * The order of the Authority did not indicate which documents and furnished were not furnished by the appellants as directed by the Authority.
\n * 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.
\n * 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.
\nRuling of the Appellate Authority
\nThe 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.
\nThe Appellate Authority for Advance Rulings analyzed the provisions of section16<\/p>\n
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