Page 86 - DTPA Journal December 21

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food are also considered as restaurant service.
Conclusion:-Thus this covers an entity which exclusively provides services by way of takeaway or door
delivery which is a cloud kitchen, hence GST rate 5%(without ITC) would be applicable as defined in
Notification No.11/2017-Central Tax(rate)
2. Issue:-Whether ice cream parlour that sells already manufactured ice creams stand on the same footing
as Restaurant Service?
Clarification:-There are many advance rulings which have concluded that the ice cream sold in ice cream
parlour would be covered under restaurant services but restaurant services include cooking/ preparing items
for consumption whereas ice cream parlours do not have the character of a Restaurant Service as they are
selling already manufactured ice- cream which does not involve any form of cooking at any stage.
Conclusion:-It is clarified that ice cream sold by a parlour or any similar outlet would attract GST at the rate of
18%and not 5%

3. Issue:-Whether GST would be applicable on free coaching services provided by coaching institutions
and NGOs under the central scheme of “Scholarships for students with Disabilities” where entire
expenditure is provided by Government to coaching institutions by way of grant in aid.
Clarification:- The ambit of Entry No. 72 of Notification No.12/2017(Rate) dated 28-06-2017 is very wide
which exempts services provided to the Central Government, State Government, Union territory
administration under any training programme for which total expenditure is borne by the Central
Government, State Government, Union territory administration and this also covers the coaching services
provided by coaching institutions and NGOs under the central scheme of “Scholarships for students with
Disabilities”.

Conclusion:-The coaching services provided by coaching institutions where entire expenditure is borne by
the Central Government, State Government, Union territory administration will be exempt.

4. Issue:-Whether satellite launch services provided by NSIL(M/s New Space India Limited) qualify as
“Export of Services” under Section 2(6) of IGST Act,2017?
Clarification:-A Circular No. 2/1/2017 –IGST dated 27-09-2017 was brought which clarified that Place of
Supply (PoS) of satellite launch services supplied by ANTRIX Corporation Ltd to customers located outside
India is outside India and such supply which meets the requirements of section 2(6) of IGST Act, constitutes
export of service and is considered to be zero rated. If the service recipient is located in India, the satellite
launch services would be taxable.

Conclusion:-Hence the services supplied by NSIL is in line with the services provided by ANTRIX
Corporation Ltd

and thus qualifies as “Export of services” and the above Circular sqauarely applies to NSIL.
5. Issue:-Whether GST is applicable on overloading charges at toll plaza?
Clarification:-Service by way of access to a road or a bridge on payment of toll charges is exempted under
Entry 23 of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017. A notification was issued
th
dated 25 Sept,2018 by Ministry of Road Transport And Highways that overloaded vehicles would be allowed
to ply on the national highways after payment of fees with multiplying factor of 2/4/6/8/10 times the base rate
of toll.

Thus, overloading charges are nothing but higher toll charges
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