In re Sri Venkateshwara Agencies (GST AAR Telangana)
Q1. Ice cream and ice cream allied products, milk shakes served in the parlour with or without adding ingredients like fruits or topping sauces according to the customer taste or requirements.
Ans. For the period from 15.11.2017 to 30.09.2019 the supply falls under Sl.No. 7(i) of Not. No. 11/2017-CT (R),dated 28.06.2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without availability of credit of input tax charged on goods and services used in supplying the service.
Further, for the period from 0 1.10.2019. The said supply falls under Sl. No. 7(ii) of Not. No. 11/2017- CT (R), dated 28.06.2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without availability of credit of input tax charged on goods and services used in supplying the service.
Q2. Ice cream and ice cream allied products sold in the parlour as such i.e. cups, cones, bars, sticks, novelties, 1/2 litre packs, party pack and bulk packs etc.
Ans. For the period from 15.11.2017 to 30.09.2019 the supply falls under Sl.No. 7(i) of Not. No. 11/2017-CT (R),dated 28.06.2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without availability of credit of input tax charged on goods and services used in supplying the service.
Further, for the period from 01.10.2019,the said supply falls under Sl. No. 7(ii) of Not. No. 11/2017-CT (R), dated 28.06.2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without availability of credit of input tax charged on goods and services used in supplying the service.
Q3. Party orders: sale of bulk ice creams to caterers as takeaway.
Ans. The provisions of Not. No. 11/2017- CT(R), dated 28.06.2017 (as amended) are not applicable.
4. Party orders: Serving of ice creams with incidents like fruits or topping as per the guest requirements or taste.
Ans. Supply falls under Sl. No. 7(v) of Not. No. 11/2017-CT (R), dated 28.06.2017 (as amended) and attracts 18% GST (9% CGST + 9% SGST) for the period from 15.11.2017 to 30.09.2019.
Supply falls under Sl. No. 7(iv) of Not. No. 11/2017-CT (R), dated 28.06.2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without availability of credit of input tax charged on goods and services used in supplying the service for the period from 01.10.2019.
Q5. Ice cream products of cups, cones bars, sticks, novelties etc. sold to pushcart vendors, who in turn sell to their customers.
Ans. The provisions of Not. No. 11/2017- CT(R), dated 28.06.2017 (as amended) are not applicable.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TELANGANA
(Under Section 100(1) of the CGST/TGST Act, 2017, any person aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order)
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1. M/s. Sri Venkateshwara Agencies, 4-5-464, 464/1, Esamiya Bazar, Hyderabad, Telangana, (GSTIN No. 36AAACG7442D1ZV) has filed an application in Form GST ARA-0 1 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules, seeking Advance Ruling with regard to applicability of Not. No. 46/2017-CT(R), dated 14.11.20 17 in respect of supply of ice cream.
2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Further, for the purposes of this Advance Ruling, the expression ‘GST Act’ would be a common reference to both CGST Act and TGST Act.
3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted.
4. Brief facts of the case:
The facts, in brief, that were reported by the tax payer in their application are as follows:
a. M/s Sri Venkateswara Agencies is a partnership firm. The said firm are the distributors of “SCOOPS” brand ice cream and ice cream products are supplied by them to sub-distributors, hotels, party orders and retail outlets in Hyderabad.
b. They deal with ice-cream products in various places such as Cream stone parlors, Scoops parlors, and sell ice cream to caterers and push cart vendors etc.;
c. In Cream Stone Parlors, ice cream is served according to the customer taste i.e. scoops of different flavors of ice creams mixing with nuts, fruits and sauces served to the customers according to his/her taste(this includes both dine in and takeaway);
d. In Scoops Parlors, ice cream products are sold as it is condition i.e. cups, cones, bars, sticks, novelties, /2 litre packs, party packs & bulk packs(this includes both dine in and takeaway)
e. In party orders, Scoop products are sold to caterers, who in turn serve to their guests.
f. In party orders, Cream Stone products are served along with their team at the customer site.
g. They also sell the ice cream products to push cart vendors, who in turn sell to their customer.
5. Questions raised:
With the above background, the applicant sought for rulings with regard to the applicability of provisions of Not. No. 46/20 17-CT(R), dated 14.11.2017 (Item No. 1), to the following activities:
(i) Ice cream and ice cream allied products, milk shakes served in the parlour with or without adding ingredients like fruits or topping sauces according to the customer taste or requirements.
(ii) Ice cream and ice cream allied products sold in the parlour as such e. cups, cones, bars, sticks, novelties, /2 litre packs, party pack and bulk packs etc.
(iii) Party orders: sale of bulk ice creams to caterers as takeaway.
(iv) Party orders: Serving of ice creams with incidents like fruits or topping as per the guest requirements or taste.
(v) Ice cream products of cups, cones bars, sticks, novelties etc. Sold to pushcart vendors, who in turn sell to their customers.
6. Contention of the tax payer:
It was contended by the applicant that in the above activities, the ice cream/ milk shakes are for human consumption with or without adding some ingredients and therefore, the applicable rate of tax would be 5% without credit of input tax as per item No. 1 of Not. No.46/2017-CT(R), dated 14.11.2017.
7. Personal Hearing:
The Authorised representatives of the unit namely Sri. Satish Saraf(CA)and Sri. K. Chandra Sekhar (FC),attended the personal hearing held on 04-12- 2019.They reiterated the facts mentioned supra and sought for clarifications in respect of the queries raised in their application. They, further, submitted letter dated 06.12.2019 duly enclosing the following documents:
1. Written submissions;
2. For GST ARA-01, Payment Challans-SGST & CGST, Acknowledgement for ARN-AD3 6061800081 6Z;
3. Details of outlets along with photographs
4. GST Registration Certificate;
5. Copy of Not. No. 46/2017-CT (R) dated 14.11.2017;
6. Copy of Advance Ruling No. KAR ADRG 68/2019-issued for M/s Hatsun Agro Product Ltd by the Authority on Advance Ruling,
8. Discussion & Findings:
We have carefully gone through the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing.
The applicant sought for ruling with regard to the applicability of Not. No. 46/2017-CT(R), dated 14.11.2017, (Item No. 1) for certain specified activities. We notice that Not. No. 46/2017-CT (R), dated 14.11.2017 referred by the applicant is only an amending notification which amends the basic Notification No. 11/2017-CT(R), dated 28.06.2017 and the relevant part of the amendment was inserted under Sl. No. 7 of the said notification. As such, the applicability has to be reckoned with reference to Not. No. 11/2017-CT(R), dated 28.06.2017 (Sl. No. 7).Further, it is noticed that the said entry was amended from time to time, the last being done on 30.09.20 19 by Not. No. 20.09.2019-CT(R), dated 30.09.2019.We therefore feel it appropriate to analyse the points raised by the applicant duly considering the updated position of the notification.
It is stated by the applicant that in their parlours, certain service activities viz., serving of ice cream by the waiters, seating facility, air conditioning facility, drinking facility, provision of dust bin and tissue papers etc. are provided to the customers. The list of details of activities provided by the applicant are enclosed as Annexure-I to this ruling. The applicant has also submitted photographs corroborating the provision of such services in their parlour. The same are enclosed as Annexure-II to this ruling. We have gone through the same and it is noticed that the applicant is indeed providing certain services to their customers in the parlours managed by them. The present ruling is issued taking into consideration the aforesaid information submitted by the applicant.
Coming to the queries raised by the applicant, the relevant extracts of Not. No.1 1/2017-CT(R), dated 28.06.20 17 with the amendments from 15.11.20 17is replicated below:
Position from 15.11.2017 to 30.09.2019
