GST rate query, Goods and Services Tax - GST

[Jinal S]

Dear Experts,

Need guidance on below-

The Company is into manufacture of food products like sandwiches, salads, fruit juices and vegetable juices.

It supplies these products in institutional packs to corporates & at times to cafes, supermarket for further sale.

What should be the applicable gst rate ?

1. Does it get covered under cloud kitchen and can take benefit of reduced rate of restaurant service. (5%)

2. Will it be taxed as " pre packed & labelled " @12%

3. Will it classify as ready to eat (HSN 2106) @18%

Will the opinion change if company supplies same in retail at a very small scale.

Thanks

Posts / Replies

[KASTURI SETHI]

1. Does it get covered under cloud kitchen and can take benefit of reduced rate of restaurant service. (5%)     :  NO

2. Will it be taxed as " pre packed & labelled " @12%  : NO

3. Will it classify as ready to eat (HSN 2106) @18%  :  YES

Will the opinion change if company supplies same in retail at a very small scale ? : NO

           Most of the decisions of AAR are in favour of the department.

[Shilpi Jain]

This supply will not be in the nature of services since the goods are prepared and delivered.  It would be supply of goods. Though the cloud kitchen circular clarifies differently.

You need to check how different is your transaction from the cloud kitchen example (apart from the fact that it is not many individual customers).