The applicable Rate of GST for the supply of food inside the restaurant situated in zoological garden, is 5%
Classification of service— In the instant case, applicant is a registered private limited company engaged in providing accommodation, food and beverages service, under SAC 9963.
The applicant proposes to open a stand-alone Restaurant at Sri Chamarajendra Zoological Gardens, a unit of Zoo Authority of Karnataka, Mysore which is a government body. The Zoo authorities insisted the applicant to charge 5% GST, on the supplies made from the Zoo premises, on treating the said service as deemed canteen service and hence has sought advance ruling in respect of the following question:
What is the applicable Rate of GST (SGST and CGST) for the supply of food inside the restaurant (branch) situated in zoological garden.
Held that—The applicable Rate of GST for the supply of food inside the restaurant (branch) situated in zoological garden, Mysuru is 5% in terms of entry number 7(ii) of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended, if separate registration is obtained for the premises or separate account is maintained in respect of the premises.
Alternately, if the applicant maintains common account in respect of both the premises, they need to discharge GST @ 5% in respect of the supply made at the premises situated at Zoological garden, Mysuru and invariably need to reverse the input tax credit in terms of Section 17 of the CGST Act 2017 read with Rule 42 & 43 of CGST Rules 2017.