The Gujarat Authority for Advance Ruling ( AAR ) has held that the supply of ice cream from outlets could not be treated as restaurant services.
The applicant HRLP Restaurant P Ltd, was engaged in the restaurant business and the ice cream division had been sold. The present outlets were broadly of the three types, wherein the applicant was supplying food which was prepared and cooked in the restaurant/eatery in addition to supplying the ice creams, which were not prepared/produced by them.
The main question to be decided was whether the supply of ice cream from any of the outlets of the applicant, could be considered as supply of restaurant services’ or not.
Rutvij Modi appeared on behalf of the applicant.
It was observed that the conjoint reading of circular No. 177 /09/2022-TRU, dated 3-8-2022 and circular No. 16412012021-GST dated 6.10.2021 leads us to a conclusion that readily available food items [not prepared, cooked in the restaurant] sold over the counter by the applicant through their outlets to the customer whether consumed in the outlets/restaurant or by way of takeaway, would not qualify as ‘restaurant services’ and was a supply of goods.
The Authority for Advance Ruling of Milind Kavatkar (Member State) and Amit Kumar Mishra (Member Centre) held that the supply of ice cream from the outlets of the applicant could not be considered as supply of restaurant services. The readily available ice creams not prepared in their outlets sold over the counter were supply of goods.
It was also held that an ice cream when ordered and supplied along with cooked or prepared food. through their outlets would assume the character of composite supply, wherein the prepared food being the principal supply and hence qualifies as restaurant services’.
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