2025-VIL-209-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - Classification of supply of Aerated Beverages in Restaurant - The applicant is a hotel operator that offers various services such as accommodation, dining, and others - Applicable rate of GST on the supply of aerated beverages in the restaurant, whether supplied independently or as part of a composite supply with food - Whether the supply of aerated beverages when supplied independently should be taxed at the rate applicable to the supply of goods, or as part of a composite supply of restaurant services; and whether the supply of aerated beverages when supplied along with food should be taxed as part of a composite supply of restaurant services – HELD - In the context of the facts presented by the applicant, the supply of aerated beverages, whether supplied independently or along with food, should be treated as a composite supply of service, with the principal supply being restaurant service – The aerated beverages are not merely supplied in their original packaged form, but are customized and served to the customers within the restaurant premises, using the infrastructure, staff, and facilities of the restaurant - The definition of "composite supply" under Section 2(30) of the CGST Act, 2017 and the provisions of Schedule II, treats the supply of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor), where such supply is for cash, deferred payment or other valuable consideration, as a supply of service – Further, since the applicant's hotel is a "specified premises" for the relevant financial year, the supply of restaurant services, including the supply of aerated beverages, would be taxable at the rate of 18% GST in accordance with the provisions of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 - The supply of aerated beverages, whether supplied independently or along with food, should be treated as a composite supply of service, with the principal supply being restaurant service, and taxed accordingly at the rate of 18% GST – Ordered accordingly
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