GST on supply of food items and newspaper in trains or on platforms
Facts and Issues of the case
M/s Deepak & Co., the appellant, has entered into an agreements with IRCTC/Indian Railways, for supply of food and beverages (packed/ MRP/ cooked) to the passengers on Rajdhani Trains and also Mall/ Express Trains. Pursuant to these agreements, the appellant 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 appellant is also engaged in supply of food items to passengers/ public through food plaza/ food stalls on the railway station.
Observations by the Court
The Court has carefully gone through the records of the case and taken into consideration the submissions made by the Appellant in their grounds of appeal and at the time of the Personal Hearing. We find that the appeal is on the limited point of whether the activity of appellant relating to supply of newspaper is taxable under the provisions of the COST Act, 2017/SGST Act, 2017/ IGST Act, 2017 and applicable rate of tax on the activity of appellant of supplying food/ beverages,
Rate of 2.5% of COST was provided subject to the condition that no credit of input tax on goods and services used in supplying the service has been taken. The court rules that the GST rate on supply of food and/or drinks by the appellant whether in trains or at platforms (static units), will be 5% without ITC. Insofar as second question is concerned i.e. supply of newspaper, we find that the same is exempt. Hence we hold that no tax is payable on the supply of newspapers on the trains,
The GST rate on supply of food and/or drinks by the appellant whether in trains or at platforms (static units), will be 5% without ITC.
In respect of supply of newspapers, the same are exempted under relevant notifications of CGST, 2017 SGST, 2017 and IGST Act, 2017.In-re-Deepak-Co.-GST-AAAR-Delhi