9911796707
TMI Blog2020 (6) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... gaur Sweets, Raigarh, Chhattisgarh [hereinafter also referred to as the applicant] is primarily engaged in the business of supplying goods & services both. (ii) List of items supplied from a sweetshop & restaurant are sweetmeats, namkeens, Dhokla, Paneer Khoa, cold drinks, ice creams, chocolates bakery items and other edible items. (iii) that, at present the applicant has opted for composition levy. (iv) that, the applicant is primarily engaged in the business of supplying goods and services both and seeks an advance ruling on the following questions / issues as under: (a) whether the supply of pure food items such as sweetmeats, namkeens, cold drink and other edible items from sweetshop which also runs a restaurant is a transaction of supply of goods or a supply of service; (b) 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: (i) Sweetmeats, namkeens, Dhokla, Paneer, Khoa etc. commonly known as snacks, cold drinks, ice creams, chocolates, bakery items, mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinary course of business one of which is a principal supply ; "mixed supply" means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply; "principal supply" means the supply of goods or services which constitute the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary; (1) That, as per the applicant interpretation of law sale of sweets, namkeens, cold drinks & other edible items through restaurants can be treated as 'composite supply' with restaurant supply being the principal service. (2) That, sale of sweets, namkeens, cold drinks & other edible items from sweetshop counter can be treated as supply of goods with applicable GST rates of the items being sold & input credit can be allowed on such supply. 4. Opinion of the concerned jurisdictional officer:- The jurisdictional Assistant Commissioner, State GST, Raigarh Circle-1, Chhattisgarh under his letter क./रा.कर /सहा.आ/पंज ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tmeats, namkeens, cold drink and other edible items from sweetshop which also runs a restaurant is a transaction of supply of goods or a supply of service; 6.2.- 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: (i) Sweetmeats, namkeens. Dhokla, Paneer, Khoa etc. commonly known as snacks, cold drinks, ice creams, chocolates, bakery items, mouth fresheners and other edible items; (ii) Ready to eat (partially or fully pre-cooked/packed)items supplied from live counters such as jalebi, cholabhatura and other edible items; (iii) Takeaway order of sweetmeats or namkeens by a person sitting in the restaurant of a sweetshop when such products are not consumed within premises the of the applicant but are takeaway. 6.3- what is the nature and rate of tax applicable to the following items supplied from of a sweetshop in which restaurant is also located in the same place and whether the applicant is entitled to claim benefit of input tax credit with respect to the same: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply; (90) "principal supply" means the supply of goods or services which constitutes the predominant element of a composite supply and io which any other supply forming part of that composite supply is ancillary; (102) "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any either mode, from one form, currency or denomination, io another form; currency or denomination for which a separate consideration is charged; 7.1 As already mentioned above we find that the applicant has a sweetshop in the ground floor and a restaurant at the first floor of the same building. In a case where two or more goods or a combination of goods and services are involved or supplied together earlier under the Service Tax regime this mechanism was called bundled service which is rendering of a service or services with another element of service of services, wherein service tax law dealt with pure services and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R SUPPLY OF SERVICES 6. Composite supply The following composite supplies 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 (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. 7.3 On the basis of evidences as forthcoming from the applicant it is quite evident that the activity of the applicant from their restaurant comes under the purview of "restaurant services", falling under Heading 9963 leviable to GST rates on services as stipulated under Notification No. 11/2017-Central Rate (Tax) dated 28.06.2017 (as amended time to time) and the relevant port on of the same is as under: Sl No. Chapter, Section, Heading Description of Service Rate (in%) Condition (1) (2) (3) (4) (5) 7 Heading 9963 (Accommodation, food and beverage services) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stand alone customer across the counter cannot be clubbed with restaurant service, it being an exclusive transaction of supply of goods independent of restaurant service. These sales do not satisfy the basic requirement of a 'composite supply' i.e. 'these cannot be treated as' being naturally bundled and supplied in conjunction with each other'. Such across the counter soles [rom sweetshop definitely requires dissimilar treatment, it being completely independent of restaurant activity at such supply would continue unhindered, irrespective of whether the restaurant is dosed or open, either temporarily or permanently. Hence such sales will be treated as supply of goods with applicable GST rates on the items supplied / sold and for only such exclusive supplies input tax credit stands admissible. 7.5 We would also like to highlight here that in case the goods supplied from the restaurant are billed under restaurant head then in such a situation such transaction will purely depend upon the constituents of each individual supply and as to whether same satisfies the conditions/ingredients of a & composite supply' or 'mixed supply', as defined under section 2(30) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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