Order Date – 22 February 2023

Facts –

• The Applicant, M/s. HRPL Restaurants P Ltd., runs a chain of restaurants/eating joint and it operates under company owned restaurants and franchise restaurants. Ice creams are also served at these outlets. These ice creams include MRP products/pre-packaged products as well as non MRP products. They are served/packed there and then.

Issue –

• Whether supply of ice cream from any of the outlets of HRPL be taxable under GST?

Order –

• The AAR held that the supply of ice cream from the outlets of the applicant is not classified as 'restaurant services'. However, the composite supply, classifiable under 'restaurant service' would be leviable to GST @ 5% with no input tax credit as per Sr. No. 7(ii) of notification No. 11/2017-CT (Rate) drd28.6.2017 as amended vide notification No. 2012019-CT (Rate) dated 30.9.2019.
• The supply of only ice cream [not prepared in their outlets and which is readily available] from any of the outlets of applicants is held to be akin to supply of ice cream from ice cream parlour, leviable to GST @ 18%.