Order Date: 1 June 2022

Facts-

• The Applicant, Indian Coffee Workers Cooperative Society Limited is engaged in providing services relating to supply of food to the employees of NTPC Anta at the premises rented from them. 
• They are running the canteen at NTPC Anta and selling articles for human consumption at pre-decided rates.
• The consideration for the services rendered is received by two ways:

1. A fixed amount is paid by the NTPC for running and maintenance of canteen.

2. Balance is recovered from those procuring food from the canteen

• The Applicant sought Advance Ruling for certain issues.

Issue Wise Ruling -

1. Issue -Whether the service provided by the applicant is classifiable as Restaurant Service or Outdoor Catering Service (HSN Code: 9963)?

• The service provided by the applicant is neither classifiable as ‘Restaurant Service’ nor ‘Outdoor Catering Service’, rather is classifiable as ‘Temporary staffing services’ under heading No. 998514, and attracts GST @ 18% (9% CGST+9% SGST) as per S. No. 23 (iii) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017.

2. Issue - Whether the rate of tax applicable, for providing such services, on consideration received from NTPC is 5% (2.5% CGST and 2.5% SGST)?

• No. GST @ 18% (9% CGST-9% SGST) as per S. No. 23 (iii) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 is applicable.

3. Issue - Whether the rate of tax applicable, for providing such services, on consideration received in the form of sale of food items to the employees/workers/others is 5% (2.5% CGST and 2.5% SGST)?

• Activities of selling articles for human consumption at pre-decided rates to the employees of the recipient at canteen of NTPC, Anta by the applicant would be fall under the ‘restaurant service’ and are classifiable under Heading No. 996333 under SI. No. 7(ii) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended time to time and would attract GST @ 5% (2.5% CGST 2.5% SGST).