However, the composite supply, supra, classifiable under ‘restaurant service’ would be leviable to GST 5% with no input tax credit as per Sr. The supply of ice cream from the outlets of the applicant is not classified as ‘restaurant services’. One such recent advance ruling was issued by the Gujarat Advance Ruling Authority (Authority) wherein the Authority ruled as under:Ģ.
Therefore, applications were filed before the Advance Ruling authorities seeking ruling on taxability and the applicable rates thereon on different food items, in view of multiple permutations and combination of transactions adopted by the restaurant and food industry. The trade has unresolved doubts on the taxability of cooked food vis-à-vis ready-to-eat food and over-the-counter sale of food, desserts and beverages. However, when the above business modus-operandi is seen in the light of GST provisions, tax implications do not appear to be simple. This paradigm shift in business is to vow maximum consumers amid changing preferences and requirements. The food would be cooked at one place, i.e., in the cloud kitchen and the same would be offered/sold through restaurants or eating joints who would ultimately serve the same to consumers. Also, the concept of cloud kitchen is in vogue due to benefits from structure optimization and cost-effectiveness. The new age restaurants and cafes now have extensive offerings of cooked food, as well as ready-to-eat options, desserts and over-the-counter saleable food, along with ready-to-drink beverages. There has been a widespread change in the eating experience offered by restaurants, cafes and eating joints recently.
Hardik Shah & Kumar Parekh – 148 235 (Article)
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