Pay GST with no ITC on supply of pure food from sweetshop-cum-restaurant as it is supply of Service : AAR

whether supply of pure food items such as sweetmeats, namkeens, cold drink and other edible items from a sweetshop which also runs a resturant is a transaction of supply of goods or a supply of service;

Held

Where applicant has a sweet shop in ground floor and a restaurant in first floor of same building, supply shall be treated as supply of service and sweet shop shall be treated as extension of restaurant and activity of applicant would come under purview of ‘restaurant services’ falling under Heading 9963 attracting GST @ 5%

 what is the nature and rate of tax applicable to the following items supplied from ground floor of a sweetshop in which restaurant is also located on the first floor and whether the applicant is entitled to claim benefit of input tax credit with respect to the same;

•  sweetmeats, namkeens, dhokla etc commonly known as snacks, cold drinks, ice creams and other edible items;
•  Ready to eat (partially or fully pre-cooked/packed) items supplied from live counters such as jalebi , chola bhatura and other edible items;
•  Takeaway order of sweetmeats or namkeens by a person sitting in the restaurant of a sweetshop when such products are not consumed within the premises of the applicant but are takeaway.

Held

The applicant cannot avail credit on GST paid on goods and services used in its said activity in terms of Notification No. 11/2017-Central Rate (Tax), dated 28-6-2017.

AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND

Kundan Misthan Bhandar, In re

VIPIN CHANDRA AND AMIT GUPTA, MEMBER

RULING NO. 09/2018-19

OCTOBER  22, 2018

Aishwarya Sharma, Adv. for the Applicant.

Download Ruling Click here

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