Shanti Prime Publication Pvt. Ltd.
Levy of GST— supply of food or drinks or any articles for human consumption to SEZ area to employees of company— Zero rated supply or not—In the instant application question before authority is that—
Whether on the facts and circumstances of the case, can the above activity be called as canteen activity, and the applicable rate of 5% be charged on our bills.
Held that— The supply made by the appellant to the employees of the unit located in SEZ cannot be construed as zero rated supply by any stretch of imagination, as the employees can neither be treated as SEZ developer nor as SEZ unit. Accordingly, GST will be applicable as per the classification of the services determined in terms of the scheme of the classification of services as provided under Annexure A to the N/N. 11/2017-C.T. (Rate) dated 28.06.2017 as amended by the N/N. 46/2017-C.T. (Rate) dated 14.11.2017.
The food is being cooked at one place and being distributed to the various different locations of the companies with whom they have entered into contract. Thus, this event is not covered under the definition of the “Restaurant services” - the appellant claim that it is running Restaurant Services in the SEZ area is not tenable and hence the GST rate of 5% as envisaged by the appellant is not correct.
Ruling— The services of supplying food by the appellant to the employees of the unit located in the Special Economic Zone is not covered under the zero rated supplies in terms of Section 16(1)(b) of the IGST Act, 2017 and the services of the appellant are also not in the nature of restaurant services as claimed by the appellant.[APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA] 6 TAXLOK.COM 04 (AAR-Maharashtra)