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TMI Blog2018 (10) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Sodexo Food Solutions India Private Limited, 5th Floor, Block 6A, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is charged to the corporate customers on a per plate basis; The contracts are for providing services on an ongoing basis for an agreed duration which could range from 1 years to 5 years, depending on the terms agreed with the corporate customer on a case to case basis. Retail services of cooking and serving food and beverages by canteens, cafeteria, etc. wherein Sodexo is engaged in sale of food and beverages to the employees or visitors who visit the canteen, cafeteria or similar premises (belonging to the customer); The consideration for food and beverages is charged to the employees or visitors.; The food and beverages sold could either be (a) sale of MRP based products (such as biscuits. chocolates, chips, etc) across the counter, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 5% GST rate, even if the canteen is outsourced to an outside contractor. Further, by way of a corrigendum to this dated 18 January 2018. the CBEC (TRU) has clarified that If the catering services, i.e.. supply of food or drink in a mess or canteen. is provided by anyone other than the educational institution, then it is a supply of service at entry 7 (i) of notification No. 11/2017 -CT (Rate) [as amended vide notification No. 46/2017 -CT (Rate) dated 14.11.2017] to the concerned educational institution and attracts GST of 5% provided that credit of input tax charged on goods and services used in supplying the service has not been taken with effective from 15.11.2017. However, the GST rate for services provided by an outdoor caterer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t establishment where food is served continuously.; The basic characteristics of an outdoor caterer is its noncontinuous nature. Once a customer engages a person to set up a mess canteen in the customer's premises, to permanently cater to the employees and guests of such caterer, a separate establishment in the nature of restaurant, eating joint, mess or canteen comes into existence with reasonable continuity and permanence and such establishments are not outdoor catering .; They have relied on the decision of Hon ble Supreme Court in the case of Tamil Nadu Kalyana Mandapam vs Union of India reported in 2004-TIOL-36-SC-ST, wherein vide Para 56, it had held the following in the case of Outdoor Caterers; Outdoor catering has an eleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hlight one aspect at this juncture. The former sub entries indicate the fact that the food gets prepared and dispensed from a specified location on a continued basis which may include take away services too whereas the latter group deals essentially with Outdoor catering.; The former sub group contains defined commercial locations where food is prepared and served on a continuous basis. The gradation as restaurant, cafe, canteen, hotel etc. are just finer efficacies meeting the specific type of dispensation but the basic Rule of food getting prepared and served in that location on a continuous basis remains constant. The design of the Group under the GST Tariff appears to have clarity and even an unintended overlap stands avoided. It is a w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;in-patients' or cafeterias or on off-shore rigs, barges or oil installations. Such a differentiation is violative of Article 301 of the Constitution. ; In this regard, they refer to the decision of the Supreme Court of India in Firm A.T.B. Mehtab Majid vs State of Madras and And wherein the Hon'ble Court has clearly laid down that any taxation that is discriminatory in nature will offend Article 301.; They have claimed that in view of the above, it would be critical to clarify that supply of food and beverages in factory canteens, offices, hospitals, offshore rigs by services providers such as Sodexo should also attract 5% GST so that there is no discrimination in the GST tax structure for supply of food and drinks in the norm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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