9911796707
TMI Blog2020 (4) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... reement and also abide by the terms and conditions given in the agreement. The Applicant has mentioned that they will be provided some of the equipment by their client for such activity. The concern of the Applicant is what will be the rate of tax to be charged to the client. 3.1 The Applicant has submitted that as per the provision of Sec. (9) of CGST Act, 2017, the tax shall be levied on supply of goods or services at such rates as notified by the Government. 3.2 The Applicant has further submitted that Entry 6 of the Schedule II is regarding Composite Supply and according to it, following composite supply shall be treated as a supply of services namely: (a)... (b) "supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink(...), where such supply or service is for cash, deferred payment or other valuable consideration." 3.3 The applicant has mentioned that the above entry clearly says that supply of food by way of or as a part of any service or even in any other manner whatsoever shall be treated as supply of services. So, as we are supplying a food as a part of a service, sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar establishments (Chapter Heading 996333). 4.3. It is further opined by the Commissionerate that as per classification of services provided vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, the activity carried out by the applicant appears to be in the nature of service provided in canteen and other similar establishments and also classifiable under Chapter Heading 996333 and GST @ rate of 18% is applicable on that service. It is further submitted that the question raised by the applicant in the authority of advance ruling is not covered in the category of advance ruling as the category of service is very much clear in the Chapter Note 996333. 5. Now, we discuss the issue in two parts viz. taxability of subject supply of services up to 25.07.2018 and w.e.f. 26.07.2018, due to amendments in subject Notifications, as below: A. TAXABILTY UP TO 25.07.2018: 5.1 We find that Sr. No. 7 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, up to 25.07.2018, issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as the 'CGST Act, 2017') and Notification No. 11/2017-State Tax (Rate) dated 30.06.2017, as amended up to 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Finance, Department of Revenue (Tax Research Unit), vide Circular No. 28/02/2018-GST dated 08.1.2018, has issued clarifications regarding GST on College Hostel Mess Fees as follows :- "2. The educational institutions have mess facility for providing food to their students and staff. Such facility is either run by the institution /students themselves or is outsourced to a third person. Supply of food or drink provided by a mess or canteen is taxable at 5% without Input Tax Credit [Serial No. 7(i) of notification No. 11/2017-CT (Rate) as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017 refers]. It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor." 5.3 It, therefore, needs to be examined whether the activity undertaken by the applicant is in the nature of supply of service provided by a restaurant, eating joint including mess, canteen and covered by Sr. No. 7(i) of the Notification No. 11/2017-Central Tax (Rate) or it is in the nature of supply of service as a part of outdoor catering and covered by Sr. No. 7(v) of the Notification No. 11/2017-Central Tax (Rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a statutory definition of who is regarded as an outdoor caterer. A caterer is an outdoor caterer because services in connection with catering are provided at a place other than his own. The use of the expression 'in connection with catering' broadens the ambit of the definition by bringing within its purview not merely a service of catering but a service which has a connection with catering. The place where the service is to be provided must be a place other than that of the caterer himself. The inclusive part of the definition includes a place which may be provided to the caterer by the person receiving the service either by an agreement of tenancy or otherwise. 9. In the present case, the assessee is a caterer. The assessee is a person who supplies food, edibles and beverages for a purpose. The purpose is to cater to persons who use the facility of a canteen which is provided by NTPC or, as the case may be, by LANCO within their own establishments. NTPC and LANCO have engaged the services of the assessee as a caterer. The assessee is an outdoor caterer because the services which he provides as a caterer are at a place other than his own. The place is provided by NTPC and LANC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than a place of the applicant. Further, the service of catering is provided by the applicant to the recipient and the fact that the meal, snacks, tea etc. are consumed by the workers/employees of the recipient, would not alter the nature of service provided by the applicant. 5.9 In view of the above, up to 25.07.2018, the said supply of services of the applicant is taxable under "Accommodation, food and beverages services" as a part of "Outdoor Catering Services" and is covered under Sr. No. 7(v) of the Table to the Notification No. 11/2017Central Tax (Rate) dated 28.06.2017, as amended up to 25.07.2018, issued under the Central Goods and Services Tax Act, 2017 and Notification No. 11/2017-State Tax (Rate) dated 30.06.2017, as amended up to 25.07.2018, issued under the Gujarat Goods Services Tax Act, 2017, attracting GST @ 18% (CGST:9% + SGST: 9%). B. TAXABILTY W.E.F. 26.07.2018: 6.1 Notification No.13/2018-Central Tax (Rate) dated 26.07.2018 seeks to amend, Notification No.11/2017-Central Tax (Rate) so as to notify CGST rates of various services as recommended by Goods and Services Tax Council in its 28th meeting held on 21.07.2018. The Explanation 1 inserted at column (3) at S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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