2022 (7) TMI 1164 - AAAR - GST

Applicable rate of GST - activity of appellant of supplying food/ beverages - supply of food through the food plaza on the railway platform (with A/C)/food stalls on the railway platform (without A/C) - supply of foods on board the Rajdhani Trains - Supply of food on board the Mail/Express train - taxability of supply of newspaper - rate of tax on supply of newspaper - applicability of N/N. 11/2017-Central Tax (Rate) dated 28.06.2017 vide N/N. 46/2017 - Central Tax (Rate) dated 14.11.2017; amendment made in N/N. 8/2017- Integrated Tax (Rate) dated 28.06.2017 vide N/N. 48/2017 Integrated Tax (Rate) dated 14.11.17; amendment made in N/N. 11/2017 - State Tax (Rate) dated 30.06.2017 vide N/N. 46/2017 - State Tax (Rate) dated 28.11.17 in the NCT of Delhi - HELD THAT - The clarification issued by CBIC vide letter F.No. 354/03/2018-TRU dated 23.03.2018 given in the letter ibid is squarely applicable to the facts of the case, where it was held that With a view to remove any doubt or uncertainty in the matter and bring uniformity in the rate of GST applicable for all kinds of supply of food and drinks made available in trains, platforms or stations, it is clarified with the approval of GST Implementation Committee, that the GST rate on supply of food and/or drinks by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms (static units), will be 5% without ITC. The GST rate on supply of food and/or drinks by the appellant whether in trains or at platforms (static units), will be 5% without ITC. Advance Authority's Order stands overruled to this extent. Taxability - Supply of newspaper - rate of tax - HELD THAT - The same is exempt vide Entry at S. No. 120 of Notification No. 2/2017 - Central Tax (Rate) dated 28.06.2017, Entry at S. No. 120 of Notification No. 2/2017 - Integrated Tax (Rate) dated 28.06.2017 and Entry at S. No. 120 of Notification No. 2/2017 - State Tax (Rate) dated 30.06.2017. Hence no tax is payable on the supply of newspapers on the trains.

Summary

Issues:
- Applicability of tax rates on the supply of food and beverages by the appellant in various scenarios.
- Tax treatment of the supply of newspapers in the mentioned cases.

Analysis:
The appeal was filed against an Advance Ruling regarding the tax implications on the supply of food and beverages by the appellant in different situations. The appellant, a supplier of food on trains and railway platforms, sought clarification on the applicable tax rates under the CGST Act and SGST Act. The appellant supplied food on Rajdhani and Mail/Express trains, as well as at food stalls on railway platforms. The Advance Authority for Rulings ruled that the service charges for supplying food on Rajdhani trains fall under catering services in trains, subject to specific notifications. The supply of food on Mail/Express trains and at food stalls on platforms was considered pure supply of goods, attracting GST on individual items at applicable rates.

Regarding the supply of newspapers, the ruling stated that they were separately invoiced and exempt from GST under relevant notifications. The personal hearing emphasized the prospective nature of a clarification by the Ministry of Railways, supported by statutory provisions. The appellate authority reviewed the case records and submissions, noting subsequent amendments to the relevant tax notifications. A clarification from CBIC highlighted the need for uniform tax rates on food and drinks supplied by the Indian Railways, leading to a ruling that the GST rate on food and drinks by the appellant would be 5% without ITC.

The appellate authority overruled the Advance Authority's order on the tax rate for food and drinks, aligning it with the CBIC clarification. However, no ruling was provided on the retrospective or prospective effect of the order. The exemption on the supply of newspapers was upheld under the relevant GST notifications. The final order established the GST rate for food and drinks by the appellant at 5% without ITC and confirmed the exemption for the supply of newspapers.