Classification of service— In the instant case, the applicant is engaged in providing services relating to supply of food to the employees of NTPC Anta at the premises rented from them. The applicant seeks mainly, amongst others, the classification under which the services provided by it are to be covered for the purpose of taxation under GST.
In this regard, the applicant entered into an agreement dated 18 October, 2021 with NTPC, vide Service Purchase Order for running and maintenance of plant canteen at NTPC, Anta for the period from 01.09.2022 to 30.06.2022.
Question(s) on which advance ruling is sought
Question 1. Whether the service provided by the applicant is classifiable as Restaurant Service or Outdoor Catering Service (HSN Code: 9963)?
Question 2. Whether the rate of tax applicable, for providing such services, on consideration received from NTPC is 5% (2.5% CGST and 2.5% SGST)?
Question 3. 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)?
Question 4. It any/all of (he above three questions are not answered by your goodself in affirmative or are answered otherwise (hen please provide the correct nature of service and the rate of tax applicable.
Held that—
1. the service provided by the applicant is neither classifiable as ‘Restaurant Service’ nor ‘Outdoor Catering Service’, rather it is classifiable as ‘Temporary staffing services’ under heading No. 998514 and attracts GST @ 18%.
2. in the instant case supply made by the applicant is classifiable under Chapter, Section or Heading 998514 under SI. No 23(iii) of Notification No. 11/2017-CT (Rate) dated 2S.06.2017 as amended time to time and is taxable at the rate of @ 18%
3. 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).