Page 53 - CA Final GST

Badlani Classes

(iii) Negotiation with respect to food and price Customer negotiates each element of
the catering service, including the price to be paid to the caterer.
(iv) Personalized service An element of personalized service is provided to the customer.
Since the two services viz. ‘restaurant services’ and ‘outdoor catering services’ are
different and outdoor catering services has more service element, hence, outright levy of
GST on outdoor caterers at 18% is justified.
The assessee’s contention is therefore, incorrect
Que. Food related service AQ Pvt. Ltd. a registered supplier, has provided following outdoor
catering services in the month of September. 2017. Compute the value of taxable supply
and GST payable thereon if all charges are exclusive of GST. Rate of CGST is 9% and
SGST is 9%
(1) Outdoor Catering Service to Higher Secondary School within the premises of school
: `5 lakhs
(2) Providing food to the students under mid day meals scheme sponsored by government
: `10 lakhs
(3) Provides catering services along with supply of food and drinks in marriage functions:
`50 lakhs
-Fair market value of goods supplied by receiver: `20 lakhs.
-No amount was charged for the goods supplied.
(4) Provides catering service to PQR Pvt. Ltd. where food & drinks are not supplied :`25
lakhs.
Ans. Computation of the value of taxable supply & GST payable (amount in `):
Outdoor Catering Service to Higher Secondary School within the Nil
premises of school [Exempt vide Entry 66 of Notification No. 12/2017-
CT(Rate)]
Provision of food under Mid Day meal Scheme sponsored by Nil
Government [Exempt vide Entry 66 of Notification No. 12/2017 –CT
(Rate) ]
Provision of catering service along with supply of food and drinks – 50,00,000
FMV of the goods supplied by the receiver is not to be included in the
value of taxable supply
Provision of catering services to PQR Pvt. Ltd. where foods and drinks 25,00,000
are not supplied
Value of taxable supply 75,00,000
CGST payable @ 9% 6,75,000
SGST payable @ 9% 6,75,000
Total GST payable 13,50,000

EXEMPTIONS : Renting of House
Services by way of renting of residential dwelling for use as residence.
Entry 66 EXEMPTIONS : Educational Institutions
SERVICES TO OR BY EDUCATIONAL INSTITUTION

Services provided-
(a) by an educational institution to its students, faculty and staff; (i.e. Education /
Page52
Transport / Hostel / Food etc)

Central Goods & Services Tax Act, 2017