In re Sri Annapumeshwari Enterprises (GST AAR Karnataka)
Whether providing catering services to Educational Institutions from 1st standard to 2nd PUC is taxable or not according to Notification No.12/2017-Central Tax Rate-under Heading 9992?
Providing catering services to Educational Institution from 1st standard to 2nd PUC is exempted as per entry No. 66 of Notification No.12/2017-Central Tax Rate as amended further.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
M/s. Sri Annapumeshwari Enterprises, 180, Nagarabhavi, 2nd Stage, 2nd Block, Opp. BDA Shopping Complex (hereinafter referred to as The applicant’), having GSTIN 29ADDFS0552R1ZH have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act.
2. The applicant is a Partnership firm registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The applicant is engaged in the business of hotel and catering service.
3. The applicant has sought advance ruling in respect of the following question:-
i. Whether providing catering services to Educational Institutions from 1st standard to 2nd PUC is taxable or not according to Notification No.12/2017-Central Tax Rate -under Heading 9992.
4. Admissibility of the application: The question is about the “determination of the liability to pay tax on any goods or services or both” and hence is admissible under Section 97(2) (e) of the CGST Act 2017.
5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue:
5.1 The applicant at the time of hearing has stated that they are carrying on the business of hotel and they are supplying ready to eat breakfast, lunch to the KLE Independent PU College, Bengaluru. They are not collecting any charges from the students. They are billing to college and college is paying the amount.
5.2 Further the applicant has submitted a letter dated 12.12.2022 wherein it is mentioned that they have filed two advance ruling applications online by mistake vide ARN AD2911220094949 dated 23.11.2022 and vide ARN AD291222004810K dated 08.12.2022 and paid fee of Rs.5000/- under SGST and paid fee of Rs.5000/- under CGST respectively for each application. The Applicant has requested to consider the SGST and CGST fee payment made to different applications to one application i.e., ARN AD2911220094949 dated 23.11.2022 and reject the other application.
PERSONAL HEARING / PROCEEDINGS HELD ON 12.12.2022
6. Shri Pradeep Kumar Shetty, one of the Partners, appeared for personal hearing proceedings held on 12.12.2022 and reiterated the facts narrated in their application.
FINDINGS & DISCUSSION
7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act.
8. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts and submissions made during the time of hearing. We find that the applicant has paid the requisite fee of Rs 5000/- each under CGST Act and KGST Act for advance ruling, however under different ARN No’s and requested to consider the same towards fee for one application i.e., ARN AD2911220094949 dated 23.11.2022 and reject the other application. Since the ruling sought is in respect of only one issue mentioned at para 3(i) supra, the request of taxpayer is considered and the payment made vide the second ARN AD29122200481 OK dated 08.12.2022 is appropriated towards fee for the ARN AD2911220094949 dated 23.11.2022 and the second application stands rejected.
9. The Applicant is a partnership firm engaged in supply of ready to eat breakfast and lunch to KLE Independent PU College. The Applicant intends to know whether providing catering services to Educational Institutions from 1st standard to 2nd PUC is liable to GST. In this regard we invite reference to entry No.66 of Notification No.12/2017-Central Tax Rate as amended vide Notification No.02/2018-Central Tax(Rate) dated 25.01.2018 which reads as under:
