2026-VIL-06-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - ITC on food and beverages in event management services - The applicant is engaged in event management and tourism services. The hotels provide bundled services to the applicant, including room accommodation, conference space, and food, sometimes issuing a single invoice and sometimes separate invoices. The applicant charges the client a consolidated event management fee - Whether the applicant is eligible to claim ITC on the inward supply of food and beverages used in providing the outward taxable bundled services - HELD - Event management involves supply of various kinds of goods and services in a bundled form. The event management service provided by the applicant is a composite supply under section 2(30) of the CGST Act, 2017, where the provision of food and beverages is an ancillary component of the principal supply of event management services. The proviso to Section 17(5)(b)(i) of the CGST Act allows ITC on inward supply of goods or services that are used as an element of a taxable composite or mixed supply. Since the applicant's outward supply is a taxable composite supply, the inward supply of food and beverages falls within the exception and is eligible for ITC - The applicant is eligible ITC on food and beverage services under the proviso to Section 17(5) for carrying out event management services which includes supply of foods and beverages – Ordered accordingly - Requirement of separate invoices for claiming ITC on food and beverages - Whether separate invoices from the hotel vendors are required for claiming ITC on food and beverage services - HELD – A separate invoices are not required for claiming ITC on food and beverages. Since the supply from the hotel is a composite supply, the individual elements lose their separate identity. The GST law does not mandate separate invoicing for each component of a composite supply. A single, consolidated invoice from the hotel, clearly detailing the charges for room rent, conference hall, and food, is sufficient for the applicant to claim ITC on all components, provided the invoice complies with the requirements of Section 16(2) of the CGST Act - ITC when food invoice is raised by hotel with margin charged by applicant - The hotel raises an invoice to the applicant for the food and beverages, and the applicant charges the client a margin over the hotel's invoice and issues its own invoice - Whether the applicant is eligible to claim ITC when the food and beverage invoice is raised by the hotel to the applicant, and the applicant charges the client a margin over it and issues its own invoice - HELD - The applicant is eligible to claim ITC in this scenario. The act of re-invoicing the food and beverage cost (plus margin) to the client demonstrates clear commercial re-supply, eliminating the "personal consumption" barrier. The transaction meets the requirement of being an "element of a taxable composite supply" under the proviso to Section 17(5)(b)(i) of the CGST Act - ITC on inseparable charges for conference hall and food - The hotel issues a single invoice under a combined heading such as "conference package" or "banquet package," without separate line items for food and hall rent - Whether the applicant is eligible to avail ITC on the entire value of such invoice where the charges for the conference hall and food are inseparable - HELD - The applicant is eligible to avail ITC on the entire value of the "conference package" invoice. Since the bundle constitutes a single inward Composite Supply to the applicant, and the input food and beverages are procured solely as an integral element of this service and used entirely for the applicant's outward taxable supply, the full input tax is eligible for credit under the proviso to Section 17(5)(b)(i) of the CGST Act.
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