2018 (10) TMI 596 - AAR - GST

Application for withdrawal of Advance Ruling application - Classification of supply - Supply of cooked food and beverages to the employees of the customers within designated area (generally the cafeteria / canteen) of the client s premises - Over the counter supply of food and beverages to the employees of clients / customers. Held that - The application filed by the Applicant for advance ruling is dismissed as withdrawn.

Summary

Issues:
1. Classification of supply of cooked food & beverages to educational institutions and other establishments under different transactions for GST applicability.
2. Request for withdrawal of advance ruling application due to changes in GST rates.

Analysis:

Issue 1:
The Applicant, engaged in supply of cooked food & beverages, sought an advance ruling on the classification and GST applicability for two separate transactions. Transaction 1 involves supplying food within designated areas of client premises, while Transaction 2 includes over-the-counter supply of food & beverages, including products with MRP. The Applicant raised four questions seeking clarity on the classification and GST rate applicability based on Circular No. 28/02/2018-GST and Corrigendum dated 18.01.2018. The questions revolved around the classification of supply to educational institutions and other establishments under both transactions.

Issue 2:
Subsequently, the Applicant requested to withdraw the advance ruling application, citing that all their transactions subject to the ruling application had been covered under Notification No. 13/2018-Central Tax (Rate) dated 26.07.2018, making the ruling application redundant. The Applicant's request for withdrawal was based on the changes in GST rates affecting the classification and tax liability of their transactions. Consequently, the Authority for Advance Rulings dismissed the application as withdrawn in light of the changes in GST rates rendering the ruling application moot.

In conclusion, the judgment addressed the classification and GST applicability of the Applicant's supply of cooked food & beverages to educational institutions and other establishments under different transactions. The withdrawal of the advance ruling application due to changes in GST rates resulted in the dismissal of the application by the Authority for Advance Rulings.