9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 163 - AAR - GSTRate of GST on Supply of ice cream - whether taxable @5% without ITC - Applicability of provisions of Not. No. 46/2017-CT(R), dated 14.11.2017 Ice cream and ice cream allied products, milk shakes served in the parlour with or without adding ingredients like fruits or topping sauces according to the customer taste or requirements - HELD THAT - The parlour would fall within the term eating joint and the supply of ice cream along with the service activities by the applicant therein squarely falls under the aforesaid definition of restaurant service . Further, as per the statement of the applicant, it can also be deciphered that supplies are not made in the specified premises - the supplies mentioned in the above transaction fall under Sl. No. 7(ii) of Not. No. 11/2017 -CT (R), dated 28.06.2017 (as amended) and attract 5% GST (2.5% CGST 2.5% SGST) w.e.f. 1.10.2019 and earlier under Sl. No. 7(i) from 15.11.2017 to 30.09.2019 without availment of credit of input tax charged on goods and services used in supplying the service. Ice cream and ice cream allied products sold in the parlour as such i.e. cups, cones, bars, sticks, novelties, litre packs, party pack and bulk packs etc. - HELD THAT - These supplies since provided in parlours to customers for dining or take away purposes also fall under Sl. No. 7(ii) of Not. No. 11/2017-CT(R) dated 28.06.2017 (as amended), since the activities narrated under this head are covered under restaurant service . Accordingly, we hold that supplies under this category attract 5% GST w.e.f. 1.10.2019 without availability of credit of input tax as they fit in the definition of restaurant service and are not supplied in the specified premises. The same holds good for earlier period (i.e. from 15.11.2017 to 30.09.2019) also as the subject supplies fall under Sl. No. 7(i) of notification. Party orders sale of bulk ice creams to caterers as takeaway - HELD THAT - Ice cream in this case, is supplied by the supplier in bulk quantities to caterers, who in turn supply the same to their customers in party events. The said transaction visibly does not indicate involvement of any service and therefore the same has to be reckoned as supply of goods i.e. ice cream .Consequently, we hold that the provisions of Not. No. 11/2017-CT(R), dated 28.06.2017 (as amended) are not applicable to the supply of ice cream supplied in bulk quantities to caterers on takeaway basis. Party orders Serving of ice creams with incidents like fruits or topping as per the guest requirements or taste - HELD THAT - The suppliers, in the case on hand, are not located in specified premises and also do not provide hotel accommodation at specified premises . Hence, supply of ice cream in the falls under Sl. No. 7(iv) of Not. No. 11/2017-CT(R), dated 28.06.2017 (as amended) and attracts 5% GST without availability of credit of input tax charged on goods and services used in supplying the service. We observe that the subject supply falls under Sl. No. 7(v) for the period from 15.11.2017 to 30.09.2019 and attracts 18%. Ice cream products of cups, cones bars, sticks, novelties etc. Sold to pushcart vendors, who in turn sell to their customers - HELD THAT - Since, there is no element of service in the stated transaction, the provisions of N/N. 11/2017-CT(R), dated 28.06.2017 (as amended) are not applicable.
Issues Involved:
1. Applicability of Notification No. 46/2017-CT(R) on various ice cream supply activities. 2. Tax rate and conditions for ice cream and allied products served in parlors. 3. Tax rate for ice cream products sold in parlors as such. 4. Tax implications for bulk ice cream sales to caterers. 5. Tax rate for serving ice creams at party orders with additional ingredients. 6. Tax implications for ice cream products sold to pushcart vendors. Detailed Analysis: Issue 1: Applicability of Notification No. 46/2017-CT(R) on Various Ice Cream Supply Activities The applicant sought clarity on the applicability of Notification No. 46/2017-CT(R) dated 14.11.2017, which amends Notification No. 11/2017-CT(R) dated 28.06.2017. The analysis considered the updated position of the notification as amended by subsequent notifications, including the latest amendment dated 30.09.2019. Issue 2: Tax Rate and Conditions for Ice Cream and Allied Products Served in Parlors The supply of ice cream and allied products, including milkshakes served in parlors with additional ingredients, falls under the definition of 'restaurant service'. This is covered under Sl. No. 7(ii) of Notification No. 11/2017-CT(R) as amended, attracting 5% GST (2.5% CGST + 2.5% SGST) without input tax credit from 01.10.2019. For the period from 15.11.2017 to 30.09.2019, it falls under Sl. No. 7(i) with the same tax rate and conditions. Issue 3: Tax Rate for Ice Cream Products Sold in Parlors as Such Ice cream products sold in parlors as such (cups, cones, bars, sticks, novelties, etc.) for both dine-in and takeaway purposes also fall under 'restaurant service'. These supplies attract 5% GST (2.5% CGST + 2.5% SGST) without input tax credit from 01.10.2019 under Sl. No. 7(ii). For the period from 15.11.2017 to 30.09.2019, they fall under Sl. No. 7(i) with the same tax rate and conditions. Issue 4: Tax Implications for Bulk Ice Cream Sales to Caterers The sale of bulk ice creams to caterers as takeaway is considered a supply of goods without any service element. Therefore, the provisions of Notification No. 11/2017-CT(R) are not applicable to this transaction. Issue 5: Tax Rate for Serving Ice Creams at Party Orders with Additional Ingredients Serving ice creams with additional ingredients at party events falls under 'outdoor catering' as defined in para 4(xxxiii) of Notification No. 11/2017-CT(R). For the period from 15.11.2017 to 30.09.2019, this supply falls under Sl. No. 7(v) and attracts 18% GST (9% CGST + 9% SGST). From 01.10.2019, it falls under Sl. No. 7(iv) and attracts 5% GST (2.5% CGST + 2.5% SGST) without input tax credit. Issue 6: Tax Implications for Ice Cream Products Sold to Pushcart Vendors The sale of ice cream products (cups, cones, bars, sticks, novelties, etc.) to pushcart vendors, who in turn sell to their customers, is considered a supply of goods without any service element. Hence, the provisions of Notification No. 11/2017-CT(R) are not applicable to this transaction. Advance Ruling: 1. Ice cream and allied products served in parlors: - From 15.11.2017 to 30.09.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(i). - From 01.10.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(ii). 2. Ice cream products sold in parlors as such: - From 15.11.2017 to 30.09.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(i). - From 01.10.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(ii). 3. Bulk ice cream sales to caterers: - Provisions of Notification No. 11/2017-CT(R) are not applicable. 4. Serving ice creams at party orders with additional ingredients: - From 15.11.2017 to 30.09.2019: 18% GST (9% CGST + 9% SGST) under Sl. No. 7(v). - From 01.10.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(iv). 5. Ice cream products sold to pushcart vendors: - Provisions of Notification No. 11/2017-CT(R) are not applicable.
|
