Restaurant is registered as Regular tax payer in gst. He is paying tax @ 5% without claiming ITC since 15th NOV 2017. He wish to sell packed choclates of branded company, icecream, milk shake , juices, cold drinks at Restaurant. Whether chocalates are taxable @ 5 Percent or 18 percent. please clarify in detail. what about other items. That Choclates , icecream, juices , shakes , cold drinks may be served on table or may be sold directly on counter or through swiggy zomato whether it makes any difference in tax liability.????????

Reply—If applicant is supplying items of food as a part of service and since the provision of eating in the premises is provided or the customers may take the same away from the applicant’s place, the transactions will covered under the amended provision of Entry 7(i) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification No.46/2017 - Central Tax (Rate) dated 14.11.2017 and attracts a tax of 5% without any input tax credit.

(Refer advance ruling pronounced by AAR Karnataka in matter of Hatsun Agro Product Ltd dated 21.09.2019)