18% GST leviable on Catering Service along with Renting of Premises for more than Rs. 7500/-: AAR [Read Order]
The applicant sought clarification on whether the lower GST rate of 5% under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) is applicable to the composite supply of "outdoor catering along with the renting of premises"
![18% GST leviable on Catering Service along with Renting of Premises for more than Rs. 7500/-: AAR [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/10/AAR-AAR-West-Bengal-Authority-for-Advance-Ruling-18-GST-Catering-Service-GST-on-Catering-Service-Renting-of-Premises-Taxscan.jpg "18% GST leviable on Catering Service along with Renting of Premises for more than Rs. 7500/-: AAR [Read Order]")
In a recent ruling, the West Bengal bench of the Authority for Advance Ruling ( AAR ) held that 18% GST should be levied on catering services along with renting of premises for more than Rs. 7500. The applicant, The Tollygunge Club Limited, is a premier and elite club in Kolkata and is primarily engaged in providing club or association services, short-term accommodation, restaurants,...
In a recent ruling, the West Bengal bench of the Authority for Advance Ruling ( AAR ) held that 18% GST should be levied on catering services along with renting of premises for more than Rs. 7500.
The applicant, The Tollygunge Club Limited, is a premier and elite club in Kolkata and is primarily engaged in providing club or association services, short-term accommodation, restaurants, catering services, etc. The applicant is in the business of a composite supply of catering services along with the renting of premises and has its own location.
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The applicant sought clarification on whether the lower GST rate of 5% under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 ( as amended ) is applicable to the composite supply of "outdoor catering along with the renting of premises.”
One of the questions raised by the applicant was whether the club is mandatorily required to pay GST at 5% without ITC or whether the club has the option to charge GST at 18% with ITC considering the fact that the club is engaged in rendering accommodation services and may increase the room tariff to Rs. 7,500/- and above during the peak season.
The bench observed the term 'catering' has not been defined under the GST Act, 2017, and under the Cambridge dictionary as any job making or serving food.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The AAR bench, comprising Dr. Tanisha Dutta and Mr. Joyjitbanik, observed that the tax is payable by the applicant at 5% without ITC, subject to the condition that the room tariff of the club does not exceed Rs. 7,500/- per unit per day or equivalent. However, when the tariff is declared above Rs. 7,500/- per unit per day, the applicant shall be liable to pay tax at 18%.
To Read the full text of the Order CLICK HERE
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