TMI Blog2021 (3) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... rules made there under - It appears from the mode of business as carried out by the applicant that when goods are supplied from the sweetmeats parlour without any element of supply of services or as a part of any services, it cannot be considered as a composite supply . Such supplies shall be treated as supply of goods and shall attract tax accordingly. Restaurant services or not - Supply of food items and beverages by the applicant which offers the facility of eating in the same premises along with takeaway - HELD THAT:- Supply of food and beverage items made in the restaurant or as takeaways from the restaurant counter having an element of supply of services shall qualify as composite supply . The principal supply being the supply of restaurant service, tax on such supply shall be levied according to entry serial number 7 of the Notification No. 11/2017- Central Tax (Rate) dated the 28th June, 2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017). Supply of catering services to an educational institution - HELD THAT:- The term catering has not been defined under the GST Act. In Cambridge Dictionary, caterin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OYJIT BANIK, MEMBER Applicant s representative heard : Mr. Shubham Khaitan, Authorised Representative Mr. Gaurav Sharma, Authorised Representative Preamble A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called the GST Act ), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST Act. 1.6 The officer concerned from the Revenue has raised no objection to the admission of the Application. 1.7 The Application is, therefore, admitted. 2. Submission of the applicant Submission of the applicant made along with application (FORM GST ARA 01) dated 06.01.2021 2.1 The applicant is engaged in supply of sweetmeats, namkeens and bakery items off the counter in the form of takeaways. The applicant is also engaged in preparing and serving fast food snacks and beverage items which can either be consumed at the premises or allowed as takeaways. Both the activities are carried out from the place of business of the applicant having two segregated portions, as submitted. Take away counter is designed in such a way that customers are allowed to take food items from the counter and the applicant doesn t provide any facility to serve the items for consumption of the same in the premises. In another section, restaurant service is offered by the applicant where applicant prepares and serves fast foods snacks, beverage items which can either be consumed at the premises or the customers can take it away. The applicant argues that the aforesaid two sections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Remark, offered by the applicant 1. Trade licence Certificate vide no 201222020220171 for period 2020-2021 issued by Siliguri Municipal Corporation These trade licence was given only for Sweet Parlour - Snacks Sweet Parlour bearing premises no 443/A/534/434, Sevoke Road in ward no 10 2. Trade licence Certificate vide no 201222020225159 for period 2020-2021 by Siliguri Municipal Corporation These trade licence was given only for Restaurant A/c - bearing premises no H/443/A/534/434, Sevoke Road in ward no 10 3. A specimen copy of invoice for sweet parlour vide bill no BB-4803 dated 03/03/2021 Two separate billing counters for two premises. The applicant stresses that one section has no authority to generate invoices for another section. Heading and serial numbers of the invoices are maintained separately i.e. serial number heading of invoices of sweet parlour and restaurant are demarcated by BB and RS respectively. 4. A specimen copy of invoice for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng requested by this Bench, has furnished a report wherefrom it appears that the sweetmeats parlour and restaurant are totally separated from each other and the buyers, after purchasing food items from the sweetmeats counter, have no option to consume the food in the premises. The applicant maintains separate billing counter and books of accounts for his two types of business. 4. Observations Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised representative of the applicant during the course of personal hearing. The expression restaurant services according to Explanation given in Notification No. 20/2019- Central Tax (Rate) dated 30.09.2019 [corresponding West Bengal State Notification No. 1699 F.T. dated 30.09.2019] 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. 4.2 The applicant is of the view that as per the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, State Government or Union territory only in cases where the institution provides services by way of pre-school education and education up to higher secondary school or equivalent. 4.8 The term catering has not been defined under the GST Act. In Cambridge Dictionary, catering is defined as any job making or serving food. In Collins Dictionary, catering has been defined as the activity or business of providing food for people. However, the term outdoor catering , according to Explanation given in Notification No. 20/2019- Central Tax (Rate) dated 30.09.2019 (corresponding West Bengal State Notification No. 1699 F.T. dated 30.09.2019) 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. 4.9 In the case in our hand, the applicant provides catering services to an educational institution which provides education services up to secondary school. Reference may be drawn to para 2 of the Circular No. 85/04/2019-GST dated 01.01.2019 issued by the Tax Research Uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 12/2017- Central Tax (Rate) dated 28.06.2017, as amended from time to time (corresponding West Bengal State Notification No. 1136 F.T. dated 28.06.2017) and shall, therefore, be exempted from payment of tax. (iv) Supply of food and beverages to the auditor, guests/ parents on programme days, as it appears from the agreement shall be treated as outdoor catering and shall attract tax @ 5% vide entry serial number 7(iv) of the Notification No. 11/2017- Central Tax (Rate) dated the 28th June, 2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017) provided that credit of input tax charged on goods and services used in supplying the service has not been taken. (v) The applicant shall follow the principle of apportionment of credit as laid down in sub-section (1) and (2) of section 17 of the GST Act read with rule 42 and 43 of the CGST/WBGST Rules, 2017 in respect of common input tax credit in the form of inputs, input services and capital goods. This Ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act. - - TaxTMI - TMITax - G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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