In re HRPL Restaurants P Ltd. (GST AAR Gujarat)
Q1. Whether supply of ice cream from any of the outlets of HRPL be considered as supply of ‘restaurant services’ or not?
The supply of ice cream from the outlets of the applicant cannot be considered as supply of ‘restaurant services’. The readily available ice creams [not prepared in their outlets] sold over the counter is supply of goods. However, an ice cream when ordered and supplied along with cooked or prepared food, through their outlets would assume the character of composite supply, wherein the prepared food being the principal supply and hence qualifies as ‘restaurant services’.
Q2. If the supply is classified as ‘restaurant services’, what would be the applicable rate of tax thereon in accordance with notification No. 11/2017-CT(Rate) dtd 28.6.2017 [as amended from time to time]?
The supply of ice cream from the outlets of the applicant is not classified as `restaurant services’. However, the composite supply, supra, classifiable under `restaurant service’ would be leviable to GST @ 5% with no input tax credit as per Sr. No. 7(ii) of notification No. 11/2017-CT(Rate) dtd 28.6.2017 as amended vide notification No. 20/2019-CT (Rate) dated 30.9.2019.
Q3. If not the restaurant services, supply of ice cream from any of the outlets of HRPL can be considered as supply of ice cream from ice cream parlour & chargeable to GST @ 18% ?
The supply of only ice cream [not prepared in their outlets and which is readily available] from any of the outlets of applicants is held to be akin to supply of ice cream from ice cream parlour, leviable to GST @ 18%.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
M/s. HRPL Restaurants P Ltd., 1201-1204, 1301-1302, Elenza Vertax, 12, 13 Floor, Sindhu Bhavan Road, Bodakdev, Ahmedabad-380059 [for short —`applicant’] is registered under GST and their GSTIN is 24AAHCR3681C1ZJ.
2. The applicant runs a chain of restaurants/eating joint namely
[a] 1944 the HOCCO Kitchen;
[b] HOCCO eatery; &
[c] Huber and Holly.
The applicant operates under two business models viz
[i] company owned restaurants &
[ii] franchise restaurants.
The applicant has sold his ice cream division to South Korea’s Lotte Confectionery.
3. As far as ‘1944 the HOCCO Kitchen’ is concerned, the activities include:
