Case Details: In re: Frutta Services Pvt. Ltd. (2026) 40 Centax 66 (A.A.R.-GST-T.N.)
Judiciary and Counsel Details
- S/Shri B. Suseel Kumar, Member (State Tax) & C. Thiyagarajan, Member (Central Tax)
Facts of the Case
The applicant, a GST-registered aggregator, supplied cooked food and beverages to corporate clients at their premises through arrangements with partner kitchens. The food was procured from such partner kitchens without any cooking activity undertaken by the applicant, while the serving of food was carried out by the clients themselves. The operations were governed by two separate agreements, namely a Kitchen Agreement with vendors and a Service Agreement with clients, under which the applicant coordinated menus, ensured quality and hygiene checks, arranged pick-up and delivery, and raised invoices based on quantity. Proceedings were initiated to determine the correct classification of the activity and the applicable rate of tax, wherein it was submitted that the activity involved multiple elements, including logistics and oversight and was not a mere trading of food. The matter was accordingly placed before the Authority for Advance Ruling (AAR).
AAR Held
The AAR held that the activity undertaken by the applicant constituted a composite supply of service classifiable under SAC 996337. It was observed that the supply involved menu coordination, delivery logistics, and quality oversight, along with the supply of cooked food, thereby not amounting to mere trading of goods. The authority held that the activity would not fall within the scope of restaurant service or outdoor catering service, as the applicant neither prepared the food nor provided event-based or occasional catering. It further held that the activity did not fall under any of the specified categories under Entry 7(i) to 7(v) of Notification No. 11/2017-CT (Rate), dated 28-06-2017. Accordingly, the supply was held to be covered under the residual Entry 7(vi) and liable to GST at the applicable rate.
List of Notifications Cited
- Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017
