In re Tollygunge Club Limited (GST AAR West Bengal)
In the case of In re Tollygunge Club Limited (GST AAR West Bengal), the applicant sought clarification regarding the GST rates applicable to a composite supply of catering services provided along with the rental of banquet/lawn facilities within a club. The primary question addressed was whether such a service could be classified as “outdoor catering” when provided with the rental of premises.
Background of the Case
Tollygunge Club Limited approached the Authority for Advance Rulings (AAR), West Bengal, to seek clarity on whether the supply of food and beverage services along with renting club premises constitutes outdoor catering services. This classification is important as it determines the applicable GST rate, which could either be 5% or 18%, depending on various factors, including the daily tariff of the premises.
Key Issues Raised
The main questions raised by the applicant were:
- Whether the composite supply of catering services within the club premises, combined with renting of the premises, can be classified as outdoor catering services.
- If so, whether such a composite supply attracts GST at the rate of 5% without Input Tax Credit (ITC).
- Whether, if classified differently, the composite supply would attract GST at 18% with ITC.
- The implications if the club’s room tariff exceeds ₹7,500 per unit per day during peak season, impacting the GST rate.
Observations of the Authority
Definition of Outdoor Catering
