Page 201 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] IN RE : NAVNEETH KUMAR TALLA 135
(3) (4) (5)
“(i) Supply, by way of or as part of 2.5 Provided that
any service or in any other manner credit of input
whatsoever, of goods, being food or tax charged
any other article for human consump- on goods and
tion or drink, where such supply or services used
service is for cash, deferred payment or in supplying
other valuable consideration, provided the service has
by a restaurant, eating joint including not been taken
mess, canteen, whether for consump- [Please refer
tion on or away from the premises to Explanation
where such food or any other article for no. (iv)].”;
human consumption or drink is sup-
plied, other than those located in the
premises of hotels, inns, guest houses,
clubs, campsites or other commercial
places meant for residential or lodging
purposes having declared tariff of any
unit of accommodation of seven thou-
sand five hundred rupees and above
per unit per day or equivalent.
Explanation. - “declared tariff” includes
charges for all amenities provided in
the unit of accommodation (given on
rent for stay) like furniture, air condi-
tioner, refrigerators or any other amen-
ities, but without excluding any dis-
count offered on the published charges
for such unit.

And no amendment was made in Sl. No. 7(v) of Notification No. 11/2017-State
Tax (Rate), issued in G.O.Ms No. 110, Revenue (CT-II) Department, dated 29-6-
2017.
16. The above amendment is based on the decision of the GST Council,
in its 23rd meeting held on 11th November, 2017 which is given supra. From the
discussions, it is evident that the intention of having tax rate of 5% as in Sl. No.
7(i) is only in respect of supply of foods in Standalone restaurants and other simi-
lar eating joints and that in Hotels wherein the declared tariff of any unit of ac-
commodation is less than Seven thousand Five hundred only. That is it is appli-
cable in cases where the consumers who purchase the food & beverages, do so on
the premises of the supplier of such food & beverages and directly pay to such
supplier.
17. In the instant case, as per the contract furnished by the applicant, it
is seen that the applicant prepares food using his own labour at the premises of
hospitals, who are the recipient of the service, and the applicant supply food to
consumers who don’t make payment to the applicant. The applicant is paid only
by the hospitals. The above GST Council discussions and decisions clearly differ-
entiate a restaurant/canteen/mess run independently and the services extended
by the applicant which fall under the category of outdoor catering. The very like-
ly scenario of ‘Outdoor Caterer’ trying to call himself as a ‘restaurant’ has been
discussed and the decision to lower the tax rate only to restaurants has been tak-
GST LAW TIMES  3rd September 2020  217