The applicant should maintain separate records for restaurant service and supply of goods with respect to input and output and billings as well as other accounting records should also be separately maintained.
Classification of service— In the instant case, applicant sought for an advance ruling in respect of the following questions—
a) Whether supply of Cakes, bakery items, ice creams, chocolates, drinks and other eatable products prepared at the premises of the applicant and supplied to the customers from the counter with the facility to consume the same in the air-conditioned premises itself covered under the restaurant services?
(b) Whether supply of items such as birthday stickers, candles, birthday caps, snow sprays etc. related items which are essentially used in birthday celebration can be classified as Composite Supply defined under Section 2 (30) of the CGST Act, 2017 and Section 2 (30) of the OGST Act, 2017 wherein the principal supply of goods consists of bakery items, chocolates while the supply of services include the supply of air conditioned place to sit and to celebrate birthday.
(c) Whether the sale of handmade chocolates which are manufactured in the workshop of the Applicant and are utilised for the purpose of providing other services such as shakes, brownies and are also retailed by packing in different containers as per the choice of the customer will be covered under the under the restaurant services?
(d) What is the nature and rate of tax applicable to the following items supplied from the premises of the Bakery shop of the Applicant
(i) Items such as Birthday caps, knife, decorative items which are bundled along with the cakes and are utilised by the Customers in the premises of the outlets.
(ii) Items such as Birthday caps, knife, decorative items which are bundled along with the cakes and are taken away by the Customers from the outlets.
(iii) Items such as chocolate, cookies which are prepared in the nearby workshop of the Applicant and then processed / customised in the outlets of the Applicant before selling to the customers
(iv) Items such as chocolate, cookies which are prepared in the nearby workshop of the Applicant and then processed / customised in the outlet as per the choice and consumed in the premises itself.
(e) Supposing, the Applicant's firm is covered under the Composite Scheme then in such cases what will be the tax liability charged on goods which are tax free without opting for composite scheme such as bread etc.
(f) Suppose, the Applicant's firm is covered under composite Scheme, then in such circumstances whether the products which are prepared in the workshop but are sold only after certain customizations in the outlets will also be covered under the composite scheme or not?
Held that—
a) Whether supply of Cakes, bakery items, ice creams, chocolates, drinks and other eatable products prepared at the premises of the applicant and supplied to the customers from the counter with the facility to consume the same is covered under the restaurant services
b) supply of items such as birthday stickers, candles, birthday caps, snow sprays etc related items which are essentially used in birthday celebration cannot be classified as Composite Supply
c) the sale of handmade chocolates which are manufactured in the workshop of the Applicant covered under the restaurant services
d) Since the goods as specified above are supplied and output tax is payable on the same, the applicant is eligible to take applicable input tax credit which is admissible as per the GST laws.
The supply of the items as mentioned in clause (iii) & (iv) from the premises of the Bakery shop of the Applicant qualifies as 'composite supply'
e) & f) Since the applicant is a manufacturer of 'Ice Creams', he is not eligible for 'Composition Scheme'.
The applicant should maintain separate records for restaurant service and supply of goods with respect to input and output and billings as well as other accounting records should also be separately maintained.
Classification of service— In the instant case, applicant sought for an advance ruling in respect of the following questions—
a) Whether supply of Cakes, bakery items, ice creams, chocolates, drinks and other eatable products prepared at the premises of the applicant and supplied to the customers from the counter with the facility to consume the same in the air-conditioned premises itself covered under the restaurant services?
(b) Whether supply of items such as birthday stickers, candles, birthday caps, snow sprays etc. related items which are essentially used in birthday celebration can be classified as Composite Supply defined under Section 2 (30) of the CGST Act, 2017 and Section 2 (30) of the OGST Act, 2017 wherein the principal supply of goods consists of bakery items, chocolates while the supply of services include the supply of air conditioned place to sit and to celebrate birthday.
(c) Whether the sale of handmade chocolates which are manufactured in the workshop of the Applicant and are utilised for the purpose of providing other services such as shakes, brownies and are also retailed by packing in different containers as per the choice of the customer will be covered under the under the restaurant services?
(d) What is the nature and rate of tax applicable to the following items supplied from the premises of the Bakery shop of the Applicant
(i) Items such as Birthday caps, knife, decorative items which are bundled along with the cakes and are utilised by the Customers in the premises of the outlets.
(ii) Items such as Birthday caps, knife, decorative items which are bundled along with the cakes and are taken away by the Customers from the outlets.
(iii) Items such as chocolate, cookies which are prepared in the nearby workshop of the Applicant and then processed / customised in the outlets of the Applicant before selling to the customers
(iv) Items such as chocolate, cookies which are prepared in the nearby workshop of the Applicant and then processed / customised in the outlet as per the choice and consumed in the premises itself.
(e) Supposing, the Applicant's firm is covered under the Composite Scheme then in such cases what will be the tax liability charged on goods which are tax free without opting for composite scheme such as bread etc.
(f) Suppose, the Applicant's firm is covered under composite Scheme, then in such circumstances whether the products which are prepared in the workshop but are sold only after certain customizations in the outlets will also be covered under the composite scheme or not?
Held that—
a) Whether supply of Cakes, bakery items, ice creams, chocolates, drinks and other eatable products prepared at the premises of the applicant and supplied to the customers from the counter with the facility to consume the same is covered under the restaurant services
b) supply of items such as birthday stickers, candles, birthday caps, snow sprays etc related items which are essentially used in birthday celebration cannot be classified as Composite Supply
c) the sale of handmade chocolates which are manufactured in the workshop of the Applicant covered under the restaurant services
d) Since the goods as specified above are supplied and output tax is payable on the same, the applicant is eligible to take applicable input tax credit which is admissible as per the GST laws.
The supply of the items as mentioned in clause (iii) & (iv) from the premises of the Bakery shop of the Applicant qualifies as 'composite supply'
e) & f) Since the applicant is a manufacturer of 'Ice Creams', he is not eligible for 'Composition Scheme'.