1. Home

SGST Advance Ruling Authority

GST - Kerala AAR - Classification of supply, Input Tax Credit, E-commerce supply, Restaurant service - Applicant is engaged in the manufacture and sale of Indian sweets, snacks, and other food and beverage items. They sell these products over-the-counter, through direct online delivery, and via electronic commerce operators and it also operates a restaurant service with dine-in and takeaway facilities - Whether the supply of sweets, snacks and savouries is a supply of goods or supply of services – HELD - The classification of the supply depends on the manner of supply. Where such items are sold over the counter without any service elements, they constitute a supply of goods. However, if supplied in a restaurant setting or through online delivery with service components, they may constitute restaurant service, which is a supply of service. The key differentiator is the presence of a service element, such as preparation, packaging, and delivery for immediate consumption - The classification of various food and beverage items (other than the listed sweets, snacks, and savouries) depends on how they are supplied. They will be treated as goods if sold over the counter without any service component, and as restaurant service if supplied in a dine-in setting or through delivery with accompanying service elements – Ordered accordingly - Whether the additional charges for packing, special package boxes, delivery charges are part of value of the supply of the respective supplies of goods or services made by the applicant – HELD - The additional charges for packing, special package boxes, delivery charges etc., are part of value of the supply of the respective supplies of goods or services made by the applicant, provided they form part of the price actually paid or payable for the transaction - Whether the applicant is eligible for Input Tax Credit under on inward supplies for provision of the outward supplies of goods sold by the applicant – HELD - The applicant is eligible for ITC on inward supplies used for the provision of outward supply of goods, subject to the provisions of Sections 16 and 17 of the CGST Act. However, for restaurant services taxed at 5% without ITC, the applicant is required to reverse proportionate ITC as per Rule 42 of the CGST Rules, as such supplies are treated as exempt for the purpose of ITC reversal - Whether the applicant is liable to pay tax on supply of sweets, savouries and other goods through E-Commerce operators – HELD - It is for the applicant to determine, based on the nature of each supply, whether the items sold through e-commerce operators are to be classified as goods or as restaurant service. Merely preparing the items in-house is not sufficient to classify the supply as restaurant service; it must also include the service element and intention of immediate consumption, as envisaged under the GST framework - If classified as goods, the applicant is liable to pay GST; if classified as restaurant service, the liability to pay tax rests with the e- commerce operator under Section 9(5) of the CGST Act, 2017 - Whether the applicant is liable to pay tax on supply of food & beverages (ie restaurant services) made through such E-Commerce operators, in light of the provisions of Section 9(5) – HELD - The applicant is not liable to pay GST on the supply of foods and beverages (i.e., restaurant service) made through e-commerce operators, as such supplies fall under Section 9(5) of the CGST Act, 2017, making the e-commerce operator liable to discharge the tax.
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST changes in July '25
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?