GST CLASSIFICATION OF RAILWAY CATERING SERVICES: M/S DEEPAK & CO. VS DAAR DELHI

GST CLASSIFICATION OF RAILWAY CATERING SERVICES: M/S DEEPAK & CO. VS DAAR DELHI

DELHI AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title: M/s Deepak & Co.

(GST DAAR Delhi)

Advance Ruling No.: 02/DAAR/2018
Date of Ruling: 28th March 2018
Applicant GSTIN: 07AAAFD9897C1ZQ
Jurisdiction: Delhi

BRIEF FACTS OF THE CASE

Para No. 1.The applicant has entered into agreements with IRCTC/Indian Railways, for supply of food and beverages (packed/ MRP/ cooked) to the passengers of Rajdham Trains as also Mail/ Express Trains. Pursuant to these agreements, the applicant is engaged in supplying of food on board the trains to the passengers travelling on these trains vide the menu approved by the Indian Railways/ IRCTC. Likewise, the applicant is also engaged in supply of food items to passengers/ putric through food plaza/ food stall on the railway station.

Para No. 8. The applicant has submitted a copy of ‘Letter of Award’ dated 02.08.2016 issued by IRCTC to them for setting up at and to operate ‘Fast Food Unit at Old Delhi Railway Station on payment of specified annual licence fee. The applicant has submitted that food and beverages (packed/ MRP/ cooked) are supplied by them to passengers at the rates fixed by the Indian Railways/ IRCTC. However, details of food and beverages supplied, the method of prices and details of services have not been submitted.

RULING

Para No. 23. In the case of supply of food and beverages (cooked/ MRP/ packed), at defined menu and tariff, by the applicant to IRCTC/ passengers on behalf of IRCTC, on board the Rajdhani/ Duronto Express trains, the service charges are covered under Service Code (Tariff) 996335 in Group 99633 of heading 9963 of Annexure/ Scheme of Classification of Services as “catering services in train”. The same are covered under 5. No. 7 (ix) of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended vide Notification No. 46/2017 – Central Tax (Rate) dated 14.11.17 and parallel Notifications of IGST ang Delhi GST. A train is a mode of transpart and hence cannot be called as a restaurart, eating joint, mess or canteen etc. and hence catering services provided on-board a train are not covered under S No. 7(i) of the said Notifications as claimed by the applicant. The supply of goods ie. food, bottled water etc. shall be charged to GST on value of goods (excluding the service charges) at applicable rates as pure supply of goods, as the same have no element of service. The supply of newspaper is separately invoiced and hence it shall be a ‘Nil’ GST. under S. No. 120 of Notification No. 2/2017. Central Tax (Rate) dated 28 06.2017 and parallel Notifications of IGST and Delhl GST.,
Para No. 24. In the case of supply of food and beverages (cooked/ MRP/ packed] on board the Mail/ express trains by the applicant directly to the passengers as per the menu/ rates fixed by IRCTC/ Railways does not have any element of service and hence the same shall be considered as pure supply of goods and GST shall be charged on individual items at their respective applicable rates. The benefit of S No. 7 of-Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 vide Notification No.’ 40/2017 – Certal Tax (Rate) dated 14.01.2017; amendment made in Notification No. 8/2017- Integrated Tax (Rate) dated 28 06.2017 vide Notification No. 48/2017 – Central Tax (Rate) dated 14.11.2017 made in Notification No. 11/2017 State Tax (Rate) dated 30.06.2017 vide Notfication No. 46/2017 State Tax (Rate) dated 28.11.17 are not amissible to the applicant.
Para No. 26. For the supply at food (Cooked/ MRP/ Packed) in food plaza, the relevant document pertaining to details of items supplied, pricing details, extent of services provided are not submitted. Hence, no ruling can be given in respect of supply for Food Plaza on the Railway Platform.