2026-VIL-100-AAR
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SGST Advance Ruling Authority

GST – Goa AAR - Classification of supply of Bakery Products and semi-finished foods items - Whether the sale of these pre-manufactured bakery products without any further cooking, preparation or processing at the outlets constitutes a supply of goods under GST – HELD - The sale of pre-manufactured bakery products at the outlets, without any cooking, preparation or processing, would constitute a supply of goods under GST. The CBIC Circular No. 164/20/2021-GST clarified that the sale of pre-manufactured food items without any cooking or preparation amounts to a supply of goods. The bakery products in the present case are movable properties and fall within the definition of "goods" under the CGST Act. Further, there is a transfer of title in these goods for consideration, and no service element is involved at the point of sale. Therefore, the sale of such pre-manufactured bakery products should be treated as a supply of goods, and the applicable GST rate would be as per the HSN classification of the particular goods - However, in respect of certain supplies like that of Pizza, pasta, salads, shakes, etc. which are cooked/prepared/made/blended at restaurant premises, same are to be treated as supply of ‘restaurant service’ irrespective of whether customer consumes them on restaurant premises or takes away – Ordered accordingly - Dual Treatment of Goods and Services - Whether applicant can charge such two separate GST rates at the same premises – HELD - The applicant is permitted under the GST law to charge GST as goods for items sold without preparation and charge GST as services for items involving preparation/cooking, subject to maintaining separate billing series and accounting records. There is no legal impediment under the GST law that prohibits a registered taxable person from carrying on the business of restaurant service and supply of goods as a trader from the same place of business. However, the applicant will be required to maintain separate series of tax invoices and clear separate records of the turnover of outward supplies on account of restaurant services and the turnover on account of supply of goods. This will pose a challenge for practical accounting purposes, and the best way to tackle it would be to maintain separate series of tax invoices for the two types of supplies. The onus to maintain clarity on this aspect rests with the applicant taxpayer.
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