Supplying food to employees of SEZ unit not treated as zero rated supply: AAR

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Supplying food to employees of SEZ unit not treated as zero rated supply: AAR

APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Merit Hospitality Services (P) Ltd., In re
SMT. SUNGITA SHARMA AND RAJIV JALOTA, MEMBER
ORDER NO. MAH/AAAR/SS-RJ/12/2018-19
– Supplying food to employees of SEZ unit not treated as zero rated supply: AAR
Service of supplying food by appellant-outdoor caterer to employees of unit located in Special Economic Zone is not covered under zero rates supplies under section 16 of IGST Act, 2017, as employees can neither be treated as SEZ developer nor as SEZ unit, accordingly, GST will be applicable as per classification of services determined in terms of scheme of classification of services as provided under Notification 11/2017-C.T. (Rate), dated 28-6-2017
Further, since food is being cooked at one place and being distributed to different locations of companies with whom they have entered into contract, this is also not covered under definition of ‘Restaurant services’.

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