Page 120 - GSTL_14th May 2020_Vol 36_Part 2

222 GST LAW TIMES [ Vol. 36
3.1 The Applicant has submitted that as per the provision of Sec. (9) of
CGST Act, 2017, the tax shall be levied on supply of goods or services at such
rates as notified by the Government.
3.2 The Applicant has further submitted that Entry 6 of the Schedule II
is regarding Composite Supply and according to it, following composite supply
shall be treated as a supply of services namely :
(a) ...
(b) “supply, by way of or as part of any service or in any other man-
ner whatsoever, of goods, being food or any other article for human con-
sumption or any drink(...), where such supply or service is for cash, de-
ferred payment or other valuable consideration.”
3.3 The applicant has mentioned that the above entry clearly says that
supply of food by way of or as a part of any service or even in any other manner
whatsoever shall be treated as supply of services. So, as we are supplying a food
as a part of a service, same shall be regarded as a canteen service and rates
should be decided accordingly as the rates for goods, and services are separate as
per Rates notifications. For further clarification of the same, the applicant has
given reference of Serial No. 7(i) of the Notification No. 11/2017-Central Tax
(Rate), dated 28-6-2017.
4.1 The Goods and Services Tax and Central Excise Commissionerate,
Kutch (Gandhidham) inter alia informed that the question under consideration is
whether the activity carried out by the applicant is considered as a supply of
goods or a supply of services and GST is applicable @ 5% or otherwise. It is
opined by the Commissionerate that as per Para 1(b) of the Schedule-II of Section
7 of the CGST Act, 2017 confirmed that the activity carried out by the applicant
shall be considered as a supply of services. It is submitted that it is understood
that the problem is to confirm the classification of services provided by the appli-
cant as beverage service/canteen service to their customers, because of multiple
classifications of services under Chapter Heading No. 9963, sub-clause (i) to (ix).
Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 is referred and it is
submitted that as per Sr. No. 71 of Annexure of the said Notification, ‘Accom-
modation, food and beverage services’ falling under Chapter Heading 9963 and
under this Chapter Group 99631 & 99632 pertains to Accommodation services
and other accommodation services. Group 99633 pertains to Food, edible prepa-
ration, alcoholic & non-alcoholic beverages serving services. It is further submit-
ted that as per GST Tariff, a special entry is available in respect of the services
provided in canteen and other similar establishments at Sr. No. 83 of the same
Annexure and the same are covered under Chapter Heading 9963 33 and GST @
rate of 18% is applicable on that service.
4.2 It is further submitted that as per contract made between the appli-
cant and the client, the canteen space and some equipments have been provided
by the client to the applicant and the applicant is only providing the services per-
taining to Food, edible preparation serving. It is opined by the Commissionerate
that the activity carried out by the applicant appears to be in the nature of cook-
ing of Foods and serving of foods along with edible preparations and it is classi-
fiable as services provided in canteen and other similar establishments (Chapter
Heading 9963 33).

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