In re Tvl. Frutta Services Private Limited (GST AAR Tamil Nadu)
The applicant is a GST-registered entity engaged in supplying food and beverages to corporate clients for distribution to their staff. The applicant does not manufacture, prepare, or process food. It operates as an aggregator by procuring cooked food from empanelled third-party kitchens and arranging delivery to client locations. The serving of food in staff canteens is managed by the corporate clients themselves. The applicant stated that there is no element of cooking or food preparation by it and that the entire transaction is in the nature of aggregation and facilitation.
Read AAAR Order in this case: 18% GST on Corporate Meal Supply as Supplier Was Not Mere Aggregator
The applicant sought an advance ruling on whether it could claim input tax credit (ITC) on inward supplies and charge GST to clients based on the category of supply of goods. The applicant relied on Sections 16 and 17(5)(b) of the CGST Act, contending that although ITC on food and beverages is generally restricted, an exception applies where the outward supply is of the same category. Since the applicant procures food and supplies it onward without preparing it, the applicant claimed that the activity constitutes a supply of goods and that ITC should be available.
