As per the ruling of West Bengal’s Authority for Advance Ruling (AAR), selling and serving eatables within the office premises is not subject to the benefit of Input Tax Credit (ITC).
However, selling eatables and sweets within the office premises for consumption outside office premises is subject to the benefit of Input Tax Credit (ITC). West Bengal’s Authority for Advance Ruling (AAR) delivered the above-mentioned ruling on March 22. Thus this ruling may work as judicial precedent in similar cases.
The aforesaid judgment was delivered in the case of Manoj Mittal. The applicant, Manoj Mittal, is involved in the eatables business and is based in Darjeeling. His premises have two divisions. On the first counter sweetmeats, bakery items and “namkeens” are prepared and sold for the purpose of takeaways. On the other counter, beverage items and fast-food snacks are sold in such a way that
Furthermore, the applicant runs catering services in an educational institution. The applicant was not sure about ITC in the above-mentioned 2 conditions. Consequently, he approached AAR
The AAR further ruled that the applicant will adhere to the principle of apportionment of credit as mentioned in law with respect to ITC in the way of inputs, input services in addition to capital goods
“As per Harpreet Singh, Partner in KPMG, the aforesaid ruling of AAR has aptly distinguished between the pure supply of foods and supply of food along with services. The distinction though blurred would be critical for determining the appropriate GST rate,” he said
An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…
It was cited by the Delhi HC that the two adjudication orders against one SCN…
The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…
In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…
Goods and Services Tax (GST) is to get paid on the procurement of materials and…
The Bombay High Court carried that as the revocation orders for the registration cancellation on…