2024 (2) TMI 1351 - AAR - GST

Classification of supply - supply of service or not - activity of supply of food by the Applicant - Tariff/Service code - restaurant service or Outdoor Catering Service? - HELD THAT - The activity to be undertaken by the Applicant viz. supply of food and beverages for a consideration is 'supply of service' - the service rendered by the Applicant falls under the Tariff/Service code 996337. Whether the service will not fall under 'Outdoor Catering Service'? - HELD THAT - The activity undertaken by the Applicant will not fit into the explanation given for 'Outdoor catering'. The restaurant service covers only services provided by restaurant, mess or canteen, thereby, the activity to be undertaken by the Applicant, that providing catering service under a contract to Industries would not be covered under 'restaurant service'. The said activity of the Applicant would not be covered under 'outdoor catering service' as it is not an event based or an occasional service. It will not be covered under 'hotel accommodation' and also not a 'specified premises'. Thus the service to be undertaken by the Applicant does not fall under 7(i) to 7(v) of the description given in the said Notification. Therefore, the catering services of the Applicant under a contract would be falling under entry No. 7(vi), being the residual entry and thereby attract 9% CGST and 9% SGST as per Notification No. 11/2017-State Tax (Rate) dated 30.06.2017.

Summary

Issues involved:
The issues involved in this legal judgment include the admissibility of an application for Advance Ruling regarding outdoor catering services, determination of the appropriate Tariff heading, Rate of Tax, and relevant notification for the activity.

Admissibility of the application:
The Advance Ruling Authority considered the application for Advance Ruling on outdoor catering services to be admissible under Section 97(2) of the CGST/TNGST Act, 2017 based on the scope of the questions raised by the Applicant.

Classification of service and Tariff heading:
The Authority determined that the activity of supplying food and beverages for a consideration by the Applicant constitutes a 'supply of service' as per Schedule II of the CGST Act, 2017. The service provided by the Applicant was classified under the Tariff/Service code 996337, as per the Annexure to Notification No. 11/2017-CT(Rate) dated 28.06.2017.

Outdoor Catering Service classification and Rate of Tax:
The Authority clarified that the service provided by the Applicant does not fall under the definition of 'Outdoor Catering Service' as per relevant notifications. Instead, the catering services under a contract were categorized under entry No. 7(vi) of Notification No. 11/2017-CT(Rate) dated 28.06.2017, attracting 9% CGST and 9% SGST.

Ruling:
The ruling stated that the proposed activity of supplying food by the Applicant falls under 'other contract food service' under SAC 996337, attracting 18% GST as per Notification No. 11/2017-CT(Rate) dated 28.06.2017 amended by Notification No. 20/2019-CT(Rate) dated 30.09.2019.

This summary provides a detailed breakdown of the legal judgment, addressing each issue involved and the Authority's findings and ruling on the matter.