2026-VIL-46-AAR
  1. Home
  2. 2026-VIL-46-AAR

SGST Advance Ruling Authority

GST – West Bengal AAR - Composite Supply - Section 2(30) and Section 8 of the CGST Act, 2017 - The applicant, who runs a restaurant, serves food and non-alcoholic drinks along with tobacco or non-tobacco based hookah to customers at the restaurant premises - Whether serving of non-tobacco hookah / tobacco-based hookah in the restaurant along with food would fall within the scope of clause 6(b) of Schedule II to the CGST Act, 2017 and be taxable at the rate applicable to restaurant services – HELD - The phrase "any other article for human consumption" used in Clause 6(b) should be interpreted with reference to the terms "food" and "any drink (other than alcoholic liquor for human consumption)" and cannot be stretched to include tobacco or non-tobacco based products for smoking. Smoking of hookah, whether tobacco-based or non-tobacco based, cannot be equated with ingestion and digestion of food or drink. The food & drink and smoking hookah cannot be put within the same bracket even when they are served in the same restaurant and on the same table - the supply of tobacco or non-tobacco products in a hookah in a restaurant is excluded from the scope of Clause 6 of Schedule II and hence serving of hookah for smoking cannot be considered as a composite supply of service – The two supplies, i.e., supply of food and supply of tobacco or non-tobacco based hookah, are to be regarded as separate supplies. The supply of food will be termed as supply of services within the ambit of Clause 6(b) of Schedule II to the CGST Act. However, the serving of hookah in the restaurant will be regarded as a composite supply of goods, and Clause 6(b) of Schedule II of the CGST Act, 2017 is not applicable to this supply - Ordered accordingly - What will be the rate of tax applicable on such services – HELD - Since the two supplies are regarded as separate supplies, different rates of tax will be applicable. The supply of food in the restaurant will be taxed at 5% GST. In case of tobacco-based hookah, the supply will be treated as supply of goods and will be taxed at 40% GST. In case of non-tobacco (dried tea leaves, mint leaves or dried rose petals etc.) based hookah, the supply will also be treated as supply of goods and will be taxed at 18% GST.
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA 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?