Authority for Advance Ruling — Classification of service— The applicant is providing canteen services to ITC limited and have been issuing the invoices for their regular Canteen services @ 5% and are also receiving a Lump Sum amount of bonus for paying their employees from their service recipient, for that they are charging @18%. The applicant sought an advance ruling as to which rate has to be taken for Reimbursement of bonus; whether they have to charge same GST rate as applicable for their main service of Canteen Service also for bonus reimbursement; if they have to charge the same GST rate as like Canteen Service, please specify the provision, on what basis they have to charge 5%, instead of 18 %.

Held that:- The Hon’ble Authority held that rate of GT would be 5% on the entire bonus amount if no commission is taken/deducted, in the capacity as an intermediary, from the amount transferred by the service recipient and it is 18% on the commission if he takes/deducts commission on the bonus amount as an intermediary.