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TMI Blog2020 (8) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... t itself provides this service (supply of food) as a part of health care services to the in-patients and the same is not available, when such supply of food and beverages is made by a person other than clinical establishment based on a contractual arrangement with such establishment Circular No. 32/06/2018 dated 12-022018 supports this view - GST is payable on supply of the services by the applicant to Hospitals and no exemption is provided in r/o the same. In the instant case, as per the contract furnished by the applicant, it is seen that the applicant prepares food using his own labour at the premises of hospitals, who are the recipient of the service, and the applicant supply food to consumers who don t make payment to the applicant. The applicant is paid only by the hospitals. The above GST Council discussions and decisions clearly differentiate a restaurant/ canteen / mess run independently and the services extended by the applicant which fall under the category of outdoor catering. The very likely scenario of Outdoor Caterer trying to call himself as a 'restaurant' has been discussed and the decision to lower the tax rate only to restaurants has been taken by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss 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 Telangana Goods and Service Tax Act, 2017. ****** 1. M/s. Navneeth Kumar Talla, H.No No.23/6/17/A, Bela Shahali Banda, Hyderabad, (GSTIN No. 36AAMPT4171B1ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 and Read with Rule 103 of CGST/TGST Rules, seeking Advance Ruling on the issues raised in their application. 2. The applicant submitted the application in FORM GST ARA-01 and Statement containing the applicant s interpretation of law relevant facts and requested for advance ruling on classification of services rendered by them and rate of tax applicable. They have submitted a copy of Challan evidencing payment of application fee of ₹ 10,000/-. 3. A personal hearing was held in this case and the assesse have appeared for personal hearing on 09.11.2018. However due to administrative exigencies, the Orders were not released. Further Government Go. Rt.No.312, Revenue (CT.II) Department, Dt. 05.11.2019 have appointed Sri B. Raghu Kiran, IRS, Joint Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration the rate of tax is 18%. The Hospital Authorities have filed a letter to Commissioner (ST) for clarification of rate of tax under GST regarding supply of food to Hospital. The Commissioner (ST) vide letter CCT s Ref No. A(1)/15/2018 dated 0502-2018 replied to the Hospital Authorities regarding rate of GST on food and beverage services will be chargeable as per Notification No.11 of 2017 and advised to file an application for clarification on Advance Ruling before Advance Ruling Authority for authenticity. 8. Further, it was also contended that the Government of India ministry of Finance Department of Revenue Tax research unit has given certain clarification regarding levy of GST on health care services provided by a clinical establishment and food supplied to the patients as per Circular No.32/06/2018-GST, dt. 12-022018 at Si. No. 5(3) as under: Sl.No. Issue Clarifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was sought for whether GST is payable on supply of food by the applicant to hospitals on outsource basis. In the case at hand, the Applicant is engaged in supplying food and beverages at the canteen of their customers. The Applicant himself does not get paid for by the consumers of the food and beverages. The Recipient of the services are hospitals who enter into contract with the applicant. The charges are received from the hospitals on monthly basis on the coupons collected. In short, it is deciphered that the Applicant is vested with management of the canteen facilities. Supply of food is classified under Service Code No. 9963. We have examined the relevant notifications providing exemption to services and found that the services rendered by the applicant are not taxable. 12. We find that entry 74 of Notification No. 12/2017 deals with exemption to the services provided by clinical established which is read as under : Heading 9993 Services by way of- (a) health care services by a clinical establishment, an authorised medical practitioner or para-medics; (b) services provided by way of transportation of a patient in an am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure of different categories of Restaurants, with a view to their possible rationalization / reduction was mandated to be examined. The same was examined at the 23rd Meeting of the GST Council held on 11th November 2017.The council discussed the various aspects involved in respect of the rate of tax on the supply is reproduced below: 65.28. The Hon ble Chairperson proposed a tax rate of 18% with input tax credit on the outdoor catering. The Hon ble Chief Minister of Puducherry observed that a tax rate of 18% on outdoor catering was too high. the Hon ble Chairperson observed that historically, this was the prevailing rate of tax on outdoor catering. The Hon ble Deputy Chief Minister of Delhi stated that a tax rate of 18% on outdoor catering could lead to tax evasion. He cautioned that having such big difference of tax rate between restaurant and outdoor catering, would lead to the practice of issuing bill from the restaurant for the outdoor catering and that they had similar experience in case of differential tax rate on liquor. The Principal Secretary, Finance, Odisha proposed a tax rate of 5% without input tax credit for the outdoor catering. The Hon ble Minister from Jhar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation .- declared tariff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]. ; And no amendment was made in Sl. No 7(v) of Notification No. 11/2017 State Tax (Rate), issued in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sional in nature. 19. To effect the above decision of the Council, the Notification No. 46/2017 - State Tax (Rate), issued in G.O.Ms No. 280, Revenue (CT-II) Department, Dt. 12-122017 was amended vide Notification No. 13/2018 - State Tax (Rate), issued in G.O.Ms No. 171, Revenue (CT-II) Department, Dt. 20-08-2018 as follows: In the said notification, in the Table:- (ii) against serial number 7,- (a) for item (i) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: - (3) (4) (5) (i) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 - (ii) Supply of restaurant service other than at specified premises 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (iii) Supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (iv) Supply of outdoor catering , at premises other than specified premises provided by any person other than- (a) suppliers providing hotel accommodation at specified premises , or (b) suppliers located in specified premises . 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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