1. [2008-TIOL-149-AAR-GST]
Coffee Day Global Ltd dated 21st August, 2018
The GST rate applicable to
Restaurant Services classified under heading 996331 is 5% (CGST-2.5% and
SGST-2.5%) without availing input tax credit.
Facts
Applicant is in the
business of running restaurants under the name and style of Café Coffee Day
where non-alcoholic beverages and food items are served. Notification
No.46/2017 dated 14.11.2017 provides that restaurants can pay GST @5%
(CGST-2.5% and SGST-2.5%), provided they do not avail input tax credit of the
tax paid on input goods and services. Notification No.11/2017- CTR dated
28.06.2017, at Sl.No.35, provides for levy of GST @18% (CGST-9% & SGST-9%)
on supply of unclassified services and the suppliers are entitled to take input
tax credit in the circumstances where they pay output tax. The question before
the authority is whether Notification No.46/2017-CTR dated 14.11.2017 applies
in circumstances where the applicant does not avail input tax credit; that it
does not prevent a restaurateur from paying tax at 18% (CGST – 9% and SGST –
9%) and availing input tax credit.
Held
Services rendered by the
applicant are clearly defined under Service Code (Tariff) 996331 – restaurant
services covered under serial number 7 of the Notification 11/2017-CTR. As the
services provided are covered under a specific heading and the Notification
carves out a specific rate of tax for that heading, the same shall be
applicable. Serial number 35 would qualify for invocation only in respect
of services that do not find
classification elsewhere, therefore, the applicant is covered by serial number
7 and not 35 (which covers heading 9997). Further right to avail input tax
credit is not an absolute right and conditions and restrictions may be
prescribed for its availment. Thus, Applicant is not entitled to pay the GST @
18% with input tax credit as the services being offered are classified under a
heading attracting GST @ 5%, without input tax credit.
2.
[2018-TIOL-148-AAR-GST]
Emerge Vocational Skills Pvt. Ltd dated 13th August, 2018
Education Services in
affiliation with a University is exempted from payment of GST
Facts
Applicant is a private
limited company engaged in providing specified educational services in the
field of Hotel Management – advance ruling is sought on the question ‘whether
the services provided in affiliation to specified universities and providing
degree courses to students under related curriculums are exempt from Goods and
Services Tax vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax
dated 28.06.2017.
Held
The Authority noted that
the Applicant has submitted that he proposes to obtain an affiliation with a University in the
State of Karnataka and shall thereafter be engaged in provision of education in
affiliation with the said university in the State of Karnataka. Since the
“Services provided by an educational institution to its students, faculty and
staff” is exempt from tax under the Central Goods and Services Tax Act, they
qualify as an educational institution insofar as those courses for which
affiliation has been obtained from the University in the State of Karnataka and
for which University Curriculum is prescribed and the qualifications recognised
by the law for the time being in force is given
after the conduct of examinations by such University. The applicant is exempted
from Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017
– Central Tax (Rate) dated 28.06.2017.
