8/17/2023 0 Comments Conference hall rent![]() ![]() Union of India 2004 (167) E.L.T.3 (S.C.), where in para 55 a comparison was made between the outdoor catering service and restaurant service and held that these 2 are different. Thus the banquet service cannot be considered to be purely a food supply service.Ī similar view was held in Tamil Nadu Kalyana Mandapan Association v. There can be a case where the hall is taken on lease for the event, etc and there is no supply of food e.g for conducting a seminar, but there can never be a case where there is a supply of food without the renting of premises for any event, etc. In the banquet hall service, equal importance is given to the renting of premises and supply of food.In respect of the banquet service, apart from serving of food, beverages (which are part of restaurant service) the customer also gets the premises and other ancillary services such as decoration, lighting, music etc.Hence, HSN 996331 would not be applicable for banquet services, as it is not in the nature of eating joints, but it is the place where events are conducted.įurther, the banquet service and restaurant services are two different services and cannot be considered as same for the following reasons: This is also evident from the other places mentioned in the HSN entry i.e. Generally ‘eating joints’ would mean a place where food is served. The HSN 996331 as per such notes is for the supply of food at places like restaurant, cafe, and other similar eating joints. The HSN 997212 as per such notes is for renting or leasing services concerning industrial, commercial or other non- residential building such as theatres, conventions etc, the said HSN could be applicable only in cases where leasing service are provided but in banquet hall service both leasing and catering services are involved. The said HSN is not applicable for banquet bookings in question as the instant services are for the actual renting of the banquet halls with food, and not mere arranging reservations. Under such notes, HSN 998553 includes arranging reservations for convention centres, etc. To get more clarity on the nature of services covered in the above referred entries we would refer to the explanatory notes to the scheme of classification of services. Rental or leasing services involving owned or leased non-residential property Services provided by Restaurants, Cafes and similar eating facilities including takeaway services’ Room services and door delivery of food. Reservation services for convention centres, congress centres. ![]() The nature of the activity is identified as being a service, the HSN classification has to be determined as per notification No.11/2017-CGST Rate dated, and the relevant classification is as follows: Hence, the banquet bookings would be a supply of service as per the above referred Schedule II entry. renting the hall, serving, ambiance, etc.,īanquet includes the supply of food along with the supply of service i.e. In the case of the banquet bookings, there are 2 supplies i.e. “Composite supply, by way of or as a part of any service or in any other manner whatsoever, of goods, being food or any article for human consumption or drink (other than alcoholic liquor for human consumption), where such supply or service, is for deferred payment or other valuable consideration” is a supply of service. This term is defined u/s 7 of the Act which includes all forms of supply such as sale, transfer, barter, exchange, license, rental, lease or disposal of goods or services or both made or agreed to be made in the course or furtherance of business and for a consideration,įurther, the supplies mentioned in Schedule II to the Act shall be treated as a supply of goods or supply of services, as mentioned therein.Įntry 6(b) of Schedule II to the Act would be relevant for our examination, which is as under: In this article, we would try to identify the HSN classification and rate applicable to the banquet bookings.ĭiscussion on relevant provisions of CGST Act: Services provided by Restaurants, Cafes and similar eating facilities including take away services, Room services and door delivery of food.Ĭatering Services in Exhibition halls, Events, Marriage Halls and other outdoor/indoor functions. ![]()
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