In re Indian Wire Products Company (GST AAAR West Bengal)
Issue: Whether serving of non-tobacco hookah / tobacco-based hookah in the restaurant along with food will be termed as supply of goods or services within the ambit of Clause 6(b) of Schedule II to the CGST Act and rate of tax thereof?
Material Facts
The appellant, a partnership firm operating the restaurant “Pappu Chaiwala” in West Bengal, proposed to serve both herbal (non-tobacco) and tobacco-based hookah along with food and beverages within its restaurant premises. It sought an advance ruling on:
- Whether serving tobacco-based and non-tobacco hookah along with food constitutes a supply of services under Clause 6(b) of Schedule II to the CGST Act.
- The applicable GST rate on herbal and tobacco-based hookah flavours.
Procedural History
The West Bengal Authority for Advance Ruling (WBAAR), by Advance Ruling Order No. 33/WBAAR/2025-26 dated 27.02.2026, held that:
- Food supplied by the restaurant constitutes restaurant service.
- Tobacco-based and non-tobacco hookah are separate composite supplies of goods.
- Tobacco-based hookah is taxable as goods under Heading 2403 with applicable levies.
- Non-tobacco hookah is taxable as goods at the applicable rate.
The appellant challenged this ruling before the West Bengal Appellate Authority for Advance Ruling (AAAR). After adjournments and a personal hearing, the appeal was decided.
