In re Shrivika Foodcraft (Prop. Mrs. Richa Jalani) (GST AAR Rajasthan)
Supply of food by the entity partially or completely cooked in the central kitchen through or from the various eating joints would be covered by ‘restaurant service’ and the supply of all the items of food and beverages offered by the eating joints/central kitchen of applicant are classifiable under HSN 9963 under SI. No. 7(ii) of Notification No. 11/2017 – CT (Rate) dated 28.06.2017 as amended time to time and are taxable at the rate of 5% (without ITC).
Now, we are required to discuss the second question of the applicant which is related to the classification and applicable tax rate on the supply made by the applicant. In this regard, we are of the view that in the instant case supply made by the applicant is classifiable under Chapter, Section or Heading 9963 under SI. No. 7(ii) of Notification No. 11/2017 – CT (Rate) dated 28.06.2017 as amended time to time and is taxable at the rate of 5% (without ITC).
Now, we are required to discuss the Third & forth question of the applicant which is related to availability of Input Tax Credit (ITC) to the applicant if the supply considered as supply of goods or as supply of service. In this regard, we find that supply to be made by the applicant is covered under “restaurant service”, as defined in Notification No. 11/2017 – CT (Rate) dated 28.06.2017 as amended and attract 5% GST (2.5% CGST + 2.5% SGST) provided that credit of input tax charged on goods and services used in supplying the service has not been taken. The aforesaid notification is prescribing rate with specific condition, no option is provided. Wherever the intention to provide option is there, it is clearly mentioned by providing multiple rates ‘with ITC’ and ‘without ITC’. Thus, we find that applicant is not entitled to take ITC as per condition laid down at SI. No. 7(ii) of Notification No. 11/2017 – CT (Rate) dated 28.06.2017
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, RAJASTHAN
Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the “GST Act”.
The issue raised by M/s M/s Shrivika Foodcraft (Prop. Mrs. RichaJalani) 59, Suraj Nagar East, Civil Lines, Jaipur, Rajasthan, 302006(hereinafter the Applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a)& (d)given as under:-
(a) Classification of any goods or services or both; and
(d) Admissibility of input tax credit of tax paid or deemed to have been paid
Further, the applicant being a registered person (GSTIN is 08BGKPM6084K2ZQ)as per the declaration given by him in Form (ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling.
A- SUBMISSION OF THE APPLICANT:(in brief)
> M/s Shrivika Foodcraft(hereinafter referred to as “applicant”)is looking forward to setup restaurants which will be offering various food items including cooked food, beverages and bakery items. The applicant will obtain a license from FSSAI under the Business Category “Food Services -Restaurants”. The applicant is registered under GST having GSTIN 08BGKPM6084K.2ZQ in the state of Rajasthan.
> The major food items offered by the applicant in their menu will be as follows:
