TMI BlogCanteen Supplies to SEZ unit employeesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir, Kindly clarify as to GST Head of tax, dealer running a canteen in a SEZ unit, for the supplies done to employees as per the agreement they are collecting IGST from the SEZ Unit , often employees will also come and eat in the same canteen by paying their personal money to the canteen, Which tax we have to collect and pay either local tax(CGST+SGST) or IGST. - Reply By Ganeshan K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alyani - The Reply = In my view, cgst, sgst is applicable. - Reply By KASTURI SETHI - The Reply = I am also of the same view as opined by Sh.Ganeshan Kalyani Ji. - Reply By Ramaswamy S - The Reply = As per the 26th July, ,2018 order of Advance Ruling of Karnataka in the case of Coffee Day, = 2018 (8) TMI 875 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA the supplies do not qualify as zero ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated as per the IGST Act, 2017 . The Ruling is reproduced below RULING The supply of non-alcoholic beverages / ingredients to such beverages, to SEZ units using coffee vending machines by the applicant, do not qualify as zero rated supply, as defined under Section 16 of the IGST Act‟2017 . From the ruling, it is clear that the supplies are under the provisions of IGST Act but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not zero rated. It means that the point of supply is outside the State and hence IGST is to be charged and not SGST+CGST Regards S.Ramaswamy - Reply By Ganeshan Kalyani - The Reply = Sir, the supplier of service and receiver of service are in SEZ and hence I opined the taxability as CGST+SGST - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of experts. - R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply By Ravikumar Doddi - The Reply = Dear sir, Some expert saying is IGST, some experts are saying SGST + CGST, kindly clarify which tax to collect with comment - Reply By Ramaswamy S - The Reply = This order will answer your query. In Re: M/s Coffee Day Global Limited - 2018 (8) TMI 875 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA a) The applicant installs beverage vending machines i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nside SEZ premises, prepares beverages using the vending machines its ingredients, supplies to SEZ units which are consumed by the employees of SEZ units and charge the SEZ units based on number of cups of beverages supplied. (Cuppage billing) b) The applicant installs beverage vending machines inside SEZ premises, supplies beverage ingredients to the SEZ units and bills based on the quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ingredients supplied. SEZ units prepare the beverages using the vending machines and serve them to its employees. There will not be any consideration for the usage of vending machine by the SEZ units. - Reply By Ravikumar Doddi - The Reply = Dear sir, My question is Supplies done to SEZ is making bill as per the agreement under IGST, and another supply is Employees of SEZ other than agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent supply i.e, General supply, which tax to collect. - Reply By Ramaswamy S - The Reply = The applicant undertakes two types of transactions. In the first type of transaction the applicant installs beverage vending machines inside SEZ premises, prepares beverages using the vending machines its ingredients, supplies to SEZ units which are consumed by the employees of SEZ units and charge the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EZ units based on number of cups of beverages supplied. (Cuppage billing). In the second type of transaction the applicant installs beverage vending machines inside SEZ premises, supplies beverage ingredients to the SEZ units and bills based on the quantity of ingredients supplied. SEZ units prepare the beverages themselves using the vending machines and serve them to its employees. There will not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be any consideration for the usage of vending machine by the SEZ units. IGST is chargeable and not CGST+SGST. Regards S.Ramaswamy - Reply By KASTURI SETHI - The Reply = On re-analysi s of the situation, I support the views of Sh.S.Ramaswamy, Sir. Section 7(5)((b) of IGST Act, 2017 also makes it clear that IGST is applicable. - Reply By Ganeshan Kalyani - The Reply = Views expressed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Sri Ramasamy Sir and Sri Kasturi Sir clarifies that Igst is applicable. I go with third views. - Reply By Ganeshan Kalyani - The Reply = * their - Reply By subramanian vijayakumar - The Reply = You have to pay IGST AND ABREE WITH THE VIEWS OF RAMASAMY SIR - Reply By Nitin Vipradas - The Reply = There are two cases. 1. supplies through vending machine. 2.General supplies such as buisuits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chips curd shrikhand other than tea. These are on payment by employee in cash. These bought out items sold supplied by vendors to employees for which whether bills to be issued by canteen contractors whose billing per month is 12 lacs. And taxability will be IGST or else as in SEZ. In my opinion it is taxable. As supply is within sez to SEZ even though it will not attract s ction 16 zero r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated. Moreover it is no way to furtherance of export business. It is a sales and purchase between employees and contractors. Supplies are not to SEZ with zero rated. Please do endorse if correct. Thnx - Reply By hemanth kumar - The Reply = Dear sir, 1. Supplies to SEZ is an inter state supplies where IGST will applies 2. Supples to employees of SEZ on their own could be considered as i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntra state supplies and liable for CGST+SGST - Canteen Supplies to SEZ unit employees - Query Started By: - Ravikumar Doddi Dated:- 23-8-2018 Goods and Services Tax - GST - Got 15 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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