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WB AAR: Selling & Serving Available, Not Subject to Benefit of GST ITC

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 Authority of Advance Ruling (AAR) Maharashtra came up with a ruling that clarifies that immovable properties with no distinct goods and services. read more with the following questions.

West Bengal’s AAR Response on March 22

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 Get to know about GST levy terms on disposal of the company’s capital goods under the CGST Act 2017. Also, we mentioned GST on the disposal of capital assets, if no ITC is claimed on capital goods. Read more.

“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

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