2018 (9) TMI 440 - AAR - GST

Withdrawal of Advance Ruling application - Whether catering services which involve operating and managing the canteens/cafeteria of the customers, provided to corporate customers qualify as services provided by a restaurant, eating joint including mess, canteen with a GST rate of 5% as per entry 7(i) of the Schedule under N/N. 11/2017 (as amended vide Notification 46/2017)? Whether retail services of cooking and serving food and beverages by canteens, cafeteria etc, provided by the canteen/cafeteria to the employees or visitors (belonging to the customer) qualify as services provided by a restaurant, eating joint including mess, canteen with a GST rate of 5% as per entry 7(i) of the Schedule under N/N. 11/2017 (as amended vide N/N. 46/2017)? Held that - The request of the applicant to withdraw the application voluntarily and unconditionally is hereby allowed without going into the merits or detailed facts of this advance ruling application - application disposed off as withdrawn.

Summary

Issues:
1. Whether catering services provided to corporate customers qualify as services provided by a restaurant with a GST rate of 5%?
2. Whether retail services of cooking and serving food and beverages by canteens to employees or visitors qualify as services provided by a restaurant with a GST rate of 5%?

Analysis:
1. The application sought an advance ruling on whether catering services, including operating and managing canteens/cafeterias for corporate customers, qualify as services provided by a restaurant under GST with a 5% rate. The Authority for Advance Ruling, Maharashtra, was approached for clarification. The applicant, Sodexo Food Solutions India Private Limited, voluntarily requested to withdraw the application before a detailed examination of the matter. The authority allowed the withdrawal without delving into the specifics of the case.

2. The second issue raised was regarding retail services of cooking and serving food and beverages by canteens or cafeterias to employees or visitors, whether such services qualify for the 5% GST rate applicable to services provided by a restaurant. The application by Sodexo Food Solutions India Private Limited, seeking an advance ruling on this matter, was withdrawn by the applicant voluntarily and unconditionally. The Authority for Advance Ruling, Maharashtra, disposed of the application as withdrawn without further analysis or judgment on the issue.

In summary, the judgment by the Authority for Advance Ruling, Maharashtra, involved two key issues related to the classification of catering and retail services provided by canteens/cafeterias under the GST regime. The applicant, Sodexo Food Solutions India Private Limited, sought clarity on the applicability of the 5% GST rate for such services but later withdrew the application voluntarily. As a result, the authority allowed the withdrawal without rendering a formal ruling on the questions raised.