GST on profit earned by CBUs from manufacture & supply of Beer

In re United Breweries Limited (GST AAAR Karnataka)

The AAAR modified the ruling rendered by the AAR is as under: –

(a) The activity engaged in by the Appellant by way of granting the Central Brewing Unit the right to manufacture and supply beer bearing its brand name, in return for a consideration, is a supply of service as mandated in Section 7 of the CGST Act 2017, read with Clause 5(c) of the Schedule II of the said Act.

(b) The supply of service by the Appellant is taxable to GST in terms of Section 9 of the CGST Act.

(c ) The service supplied by the appellant is classified under the Service Code 999799 as “other services nowhere else classified”

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