Case Law Details
In re Merit Hospitality Services Private Ltd (GST AAR Maharashtra)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and the MGST Act”] by Merit Hospitality Services Private Ltd., the applicant is seeking an advance ruling in respect of the following questions :
The company is registered as “Outdoor Caterers” under the GST Act. It was also registered in the same category under service tax regime The company is engaged in the business of supply, by way of and as a part of and in any other manner whatsoever of goods, being food and any other article for human consumption or drink. In nutshell it is providing snacks and food for breakfast, lunch, evening tea and dinner to the employees of various companies. The food is prepared at our own kitchen and it is distributed to various companies at different locations. There are 4 different situations mentioned below on the basis of which the company is carrying on the abovementioned business. These situations are based on the terms of contract entered by Merit Hospitality with various corporate clients.
Case l) The company (Merit Hospitality) has entered into a contract for supply of food to the employees of the company say ‘A’ Ltd. The contract is signed between Merit Hospitality and ‘A’ Ltd for supply of food. As per the terms of contract Merit Hospitality has to supply the food at ‘A’ Ltd.’s premises. The distribution of the food is directly done by the staff of ‘A’ Ltd. The menu and the material specifications are mentioned in the contract and also the rate for various items are pre-determined between Merit Hospitality and the company. The billing is done by Merit Hospitality directly to the company on monthly basis and payment is received from the company to Merit Hospitality directly as per the terms of payment mentioned in the contract.
Question: Whether on the facts and circumstances of abovementioned case can the above activity be called as canteen activity and the applicable rate of 5% be charged on our bills?
Please become a Premium member. If you are already a Premium member, login here to access the full content.
