2026-VIL-25-AAR
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SGST Advance Ruling Authority

GST – Tamil Nadu AAR – Taxability of supply of food services, Eligibility of input tax credit and charging GST on outward supply of food, Supply of goods or supply of services – Applicant is engaged in the business of supplying food and beverages to corporate entities. The applicant procures cooked food from empaneled kitchens and coordinates the delivery to the corporate clients through outsourced logistics providers. The applicant does not have its own kitchen or prepare the food themselves - Whether the applicant liable to GST on the outward supply of food – HELD - The applicant undertakes to deliver food items at the client’s location. Apart from this, the applicant is also involved in the overall logistics relating to the delivery of food to the client - The activity of the applicant cannot be considered as a mere ‘supply of goods’, but as the applicant is involved in providing a composite supply, with supply of logistics services along with supply of food, the same is liable to be treated as a ‘supply of service’ as laid down in clause (b) to para 6 of Schedule II to the CGST Act, 2017 - The overall supply of food services rendered by the Applicant falls rightly under the SAC 996337 – The activity of supply of food undertaken by the applicant falls under entry No.7(vi) of the service rate Notification No. 11/2017-CT(Rate), dated 28.06.2017, as amended, being the residual entry, thereby attracting 18% GST - The applicant cannot charge GST according to the nature of food being supplied by them, and they are liable to charge GST at 18% on the supply of service involving food to their clients, as per Sl. No. 7(vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended - the applicant is eligible to avail ITC on the inward supply of goods/service – Ordered accordingly - Whether the applicant is eligible to avail ITC on the inward supply of goods/service – HELD – The sl. No. 7(vi) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, does not have any condition for the availment of ITC, unlike the other entries from Sl. Nos. 7(ii) to 7(v) of the said notification. Further, the proviso to Section 17(5)(b)(i) of the CGST Act, 2017 allows the availment of ITC where the inward supply of goods/service is used by the registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply. Since the applicant's inward supply of goods/service is used for making an outward composite supply of food and service, in the same line of business, the applicant is eligible to avail ITC.
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