In re The Bengal Rowing Club (AAR West Bangal)
Supply of food, by way of or as part of any service or in any other manner whatsoever, from the Applicant’s restaurant is classifiable under SAC 9963 and taxable under Sl No. 7(i) or 7(iii) of the Notification No. 11/2017-CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135-FT dated 28/06/2017), depending upon the criteria mentioned therein.
If food is supplied by way of or as part of the services associated with organizing social events at the club premises, together with renting of such premises, it will be classifiable under SAC 9963 and taxable under Sl No. 7(vii) of the above-mentioned rate notification.
All other services offered by the Applicant are classifiable under SAC 9995 and taxable under Sl No. 33 of the above rate notification.
The Applicant should apply the provisions under section 17(2) & (6) of the GST Act, read with rules 42 and 43 of the GST Rules, for reversal of input tax credit, treating supplies, if any, taxable under Sl No. 7(i) of the above rate notification, as exempt supplies.
Reference to food in this ruling includes the supply of other articles of human consumption and drink (whether or not alcoholic liquor).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,WEST BANGAL
1. Admissibility of the Application
1.1 The Applicant is stated to be a company limited by guarantee and registered with ROC as a non-profit making company. It is engaged in providing its members privileges and amenities of a club such as swimming facility, gymnasium, indoor games, restaurant service etc. It seeks an advance ruling on the rate of GST applicable on the services it offers, like the restaurant service offered along with the supply of food, services like valet parking, music, decoration and other such services associated with organizing social gatherings etc. The Applicant also wants to know the admissible proportion of the input tax credit for services other than the supply of food.
1.2 The Applicant seeks an advance ruling on the applicable rate of tax. The concerned officer from the Revenue submits that the questions raised are not admissible for an advance ruling under section 97(2) of the GST Act. Clauses under section 97(2) do not cover the rate of tax as an issue on which advance ruling is admissible.
1.3 Section 97(2)(b) of the GST Act empowers this Authority to pronounce a ruling on the applicability of a notification issued under the GST Act. It includes questions to ascertain the applicability of any entry of the rate notifications issued, specifying the rate of tax or exemption from payment of tax. The Applicant’s questions are related to applicability of different entries of Notification No. 11/2017 – CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135 – FT dated 28/06/2017), as amended from time to time, collectively called hereinafter the Rate Notification.
1.4 The questions raised by the Applicant are, therefore, admissible under section 97(2)(b) of the GST Act. The Applicant also declares that the issues raised in the application are not pending nor decided in any proceedings under any provisions of the GST Act. The officer concerned from the Revenue has raised no objection on that point.
1.5 The Application is, therefore, admitted.
2. Submissions of the Applicant
2.1 In its written submission the Applicant provides in detail the rates at which it now charges GST on its various supplies. It also submits that input tax credit attributable to supplies other than food is apportioned following rules 42 and 43 of the CGST Rules, 2017 / WBGST Rules, 2017 (hereinafter collectively called ‘the GST Rules’).
2.2 The rates at which the Applicant charges GST on various supplies are provided in the table below.
