In re Cheftalk Food And Hospitality Services Pvt. Ltd (GST AAR Karnataka)
The Karnataka Authority of Advance Ruling (AAR) has rejected an application filed by Cheftalk Food And Hospitality Services Pvt. Ltd. The company, engaged in providing catering services, including to Indira Canteen, sought an advance ruling on whether a subsidy received from the state government constitutes part of the “consideration” under Section 2(31) of the CGST Act. However, the AAR declined to admit the application.
The rejection was based on Section 98(2) proviso (i) of the CGST Act, 2017, which prohibits the AAR from admitting an application if the question raised is already pending or has been decided in other proceedings. During a personal hearing on June 5, 2025, the company’s authorized representative admitted that a proceeding had already been initiated on the same issue. An audit report dated November 25, 2024, had been issued by the Deputy Commissioner of Commercial Taxes, confirming that the matter was already under review. Therefore, the AAR ruled that it could not provide a ruling on a matter that was already being addressed by tax authorities.
Whether the subsidy received from the state government forms part of the consideration under section 2(31) of CGST Act.
