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TMI Blog2022 (7) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... cook, cleaner, helper etc. for running maintenance of the canteen at NTPC, Anta for a consideration amounting to Rs. 68,45,452/- for a period of 10 months. The activity undertaken by the applicant is covered under Supply as defined under Section 7 (1) of the GST Act, 2017 - the activity of supply of manpower service for running maintenance of the canteen for consideration in the course of business is covered under supply as per section 7 of the CGST Act, 2017 and liable to tax as per section 9 of the CGST Act, 2017. The service provided by the applicant is neither classifiable as Restaurant Service nor Outdoor Catering Service, rather it is classifiable as Temporary staffing services under heading No. 998514 and attracts GST @ 18% as per S. No. 23 (iii) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 (as amended). Applicable tax rate on the supply made by the applicant - HELD THAT:- In the instant case supply made by the applicant is classifiable under Chapter, Section or Heading 998514 under SI. No 23(iii) of Notification No. 11/2017-CT (Rate) dated 2S.06.2017 as amended time to time and is taxable at the rate of @ 18%. Rate of tax applicable, for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce ruling as it falls under the ambit of the Section 97(2) (a) given as under: (a) Classification of any Goods or Service or Both As Per declaration given by the applicant in Form (ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION OF THE APPLICANT:(in brief) M/s Indian Coffee Workers Cooperative Society Limited, Indian Coffee House, NTPC, Anta, Distt-Baran-325202, Rajasthan (Applicant) is engaged in providing services relating to supply of food to the employees of NTPC Anta at the premises rented from them. The applicant seeks mainly, amongst others, the classification under which the services provided by it are to be covered for the purpose of taxation under GST. A brief note on the nature of activity undertaken by the applicant is hereunder provided before getting into the submissions regarding applicant s understanding of the questions on which advance ruling is sought from your honour. Nature of Activity: -The assessee is into plant canteen services at NTPC Anta. -The pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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. The said notification also defines the outdoor catering service (which is mentioned at item (iv) of serial number 7 of the table of the said notification) as below: (xxxiii) Outdoor catering means supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature . The said notification further defines the Specified premises and Hotel accommodation as below: (xxxvi) Specified premises means premises providing hotel accommodation services having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent. (xxxiv) Hotel accommodation means supply, by way of accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes including the supply of time share usage right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) suppliers providing hotel accommodation at specified premises , or (b) suppliers located in specified premises . Again, they undertake to not take input tax credit as is the pre-condition to get covered by the said item (iv). It was held by the Gujarat Authority for Advance Ruling in the ruling order no. GUJ/GAAR/R/18/2019 in the case of Gurukrupa Hospitality Services that the services provided by the applicant were covered in item (i) of serial no.7 as amended by the notification no. 13/2018 Central Tax (Rate) dated 26.07.2018 which is - in principle - similar to the present item (ii) of serial no.7 as amended by the notification no.20/2019. Question 2. Whether the rate of tax applicable, for providing such services, on consideration received from NTPC is 5% (2.5% CGST and 2.5% SGST)? Submission: In the understanding of the applicant the rate of tax applicable should be 5% (2.5% CGST and 2.5% SGST) on the consideration received from the NTPC because a.) the service rendered as mentioned in the submission to question 1 as above attracts GST @ 5% (2.5% CGST and 2.5% SGST); b.) the service is provided by the applicant to the recipient a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee questions are not answered by your goodself in affirmative or are answered otherwise (hen please provide the correct nature of service and the rate of tax applicable. C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 11.05.2022 25.05.2022. On behalf of the applicant CA, Priyank Kabra (Authorised Representative) appeared for PH. During the PH, he reiterated the submissions already made in the application. D. COMMENTS OE THE JURISDICTIONAL OFFICER The Dy./Assistant commissioner, State Tax, Commercial Tax Department, Circle-Baran has submitted his comments vide letter dated 21.03.2022 which are as under : 1. Yes, the service provided by the applicant is classifiable as outdoor catering services (HSN Code 9963) according to the entry for schedule II the supply of food by way of or as a part of any services or even in any other manner what over shall be treated as supply of service. 2. The rate of tax applicable for providing such services on consideration received from NTPC should be 5% (2.5 CGST and 2.5% SGST) as per serial number 7(iv) of notification number 11/2017 - Central Tax (Rate) as amended by notification num ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o an agreement dated 18 October, 2021 with NTPC, Anta vide Service Purchase Order No. 4600067256-017-1013 dated 28.09.2021 for running and maintenance of plant canteen at NTPC, Anta for the period from 01.09.2022 to 30.06.2022 (Ten Months) having contract value of Rs. 68,45,452/-. As per Bill of Quantity , break up of contract value is as under: S. No. Staff Nos. Amount (Rs.) 1 Manager 01 67,30,477.30 2 Counter Clerk 02 3 Cook 02 4 Asst. Cook 02 5 Sr. Bearer 01 6 Bearer 08 7 Cleaners 03 8 Total (A) 19 9 GST liability Plant Canteen Food Items (B) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . will be handed over to the NTPC s management in goods and working condition. Further, as per written submission made by the applicant, the consideration for the services rendered is being received by two ways: 1) A fixed amount is paid by the NTPC for running and maintenance of canteen. NTPC has agreed to pay a fixed monthly amount to the applicant with the conditions as mentioned in Service Purchase agreement. 2) Balance is recovered from those procuring food from the canteen. As per the agreement with NTPC, amount at which the applicant has to provide food items to the persons procuring them is decided among the applicant and the NTPC. The amount is then recovered from the food-procurers. From the above facts, we observe that on the behalf of M/s Indian Coffee Workers Cooperative Society Limited, Mumbai, Shri K. B. Sanjayan, Manager, M/s Indian Coffee House, NTPC, Anta, Rajasthan has acknowledged the aforesaid Service Purchase Order by making signature as Authorised Signatory over it in token of acceptance of the same. Further, on perusal of Bill of Quantity and S. No. 16, 21 24 of the Service Purchase Order dated 28.09.2021, it is find that appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (as amended). The same is reproduced as under: Sl.No. Chapter, Section or Heading Description of Service Rate (%) Condition 23 Heading 9985 (Support services) (i) Supply of tour operators services. Explanation .- tour operator means any person engaged in the business of planning, scheduling, organizing, arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours. 2.5 1. 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)] 2. The bill issued for supply of this service indicates that it is inclusive of charges of accommodation and transportation required for such a tour and the amount charged in the bill is the gross amount charged for such a tour including the charges of accommodation and transportation required for such a tour. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n), where such supply or service is for cash, deferred payment or other valuable consideration. As per explanatory notes to the scheme of classification under heading 9963: Accommodation, Food and Beverage service, we find that activity being undertaken by the applicant will be classified under heading 996333 as services provided in canteen and other similar establishments . Further, the GST rates on services have been notified by the Government vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended vide Notification No. 20/2019-CT(R) dated 30.09.2019 and the relevant extract of the said notification (as amended) for the present issue is reproduced as under: Sl.No. Chapter, Section or Heading Description of Service Rate (%) Condition 7 Heading 9963 (Accommodation, food and beverage services) (i) Supply of hotel accommodation having value of supply of a unit of accommodation above one thousand rupees but less than or equal to seven thousand five hundred rupees per unit per day or equivalent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e supply of outdoor catering together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) provided by suppliers providing hotel accommodation at specified premises or suppliers located in specified premises . 9 - As evident from the tariff above, there is a specific entry for Supply of restaurant service other than at specified premises in Entry 7(ii) and for the purpose of the said Notification, restaurant service has been defined in the notification itself as under: (xxxii) Restaurant service means 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. The only exclusion from the entry 7(ii) is supply of such service at specified premises . In the notification No. 11/2017-CT(R) dated 28.06.2017 at explanation No. (xxxvi) the specified premises de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rate of tax applicable. In this regard, as discussed in foregoing paras, we find that the services of supplying of staff/employee/labor by the applicant to the NTPC, Anta is neither classifiable as Restaurant Service nor Outdoor Catering Service , rather it is classifiable as Temporary staffing services under Heading No. 998514 and attracts GST @ 18% (9% CGST+9% SGST) as per S. No. 23 (iii) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 (as amended). Further, activities of selling articles for human consumption at pre-decided rates to the employees of the recipient at canteen of NTPC, Anta by the applicant would be fall under the Restaurant Service and are classifiable under Heading No. 996333 under SI. No. 7(ii) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended time to time and would attract 5% GST (2.5% CGST + 2.5% SGST). 6. In view of the foregoing, we rule as follows: - RULING (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Rajasthan Goods and Services Tax Act, 2017) For reasons as discussed in the body of the order, the questions are answered thus: Question 1. Whether the service prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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