Sweet Shop shall be treated as extension of restaurant : AAR

Sweet Shop shall be treated as extension of restaurant : AAR | This ruling was made by Authority of Advance Ruling Uttarakhand in matter of Kundan Misthan Bhandar. Below mentioned Questioned were referred by Authority of Advance Ruling Uttarakhand.

Sweet Shop shall be treated as extension of restaurant : AAR

1. whether supply of pure food items such as sweetmeats, namkeens, cold drink and other edible items from a sweetshop which also runs a resturant is a transaction of supply of goods or a supply of service;
2.  what is the nature and rate of tax applicable to the following items supplied from ground floor of a sweetshop in which restaurant is also located on the first floor and whether the applicant is entitled to claim benefit of input tax credit with respect to the same;
3.  sweetmeats, namkeens, dhokla etc commonly known as snacks, cold drinks, ice creams and other edible items;
4.  Ready to eat (partially or fully pre-cooked/packed) items supplied from live counters such as jalebi , chola bhatura and other edible items;
5.  Takeaway order of sweetmeats or namkeens by a person sitting in the restaurant of a sweetshop when such products are not consumed within the premises of the applicant but are takeaway.

The Extract of Order of Authority of Advance Ruling Uttarakhand is given below :

ORDER

(i) The supply shall be treated as supply of service and sweet shop shall be treated as extension of restaurant;
(ii) The rate of GST on aforesaid activity will be 5% as on date , on the condition that credit of input tax charged on goods and services used in supplying the aid service has not been taken;
(iii) All the items including takeaway items from the said premises shall attract GST of 5% as on date subject to the condition of non availment of credit of input tax charged on goods and services used in supplying the said service.

Source: https://studycafe.in/2018/11/sweet-shop-shall-be-treated-as-extension-of-restaurant-aar.html