Levy of GST — In the instant case, Advance Ruling was sought for whether GST is payable on supply of food by the applicant to hospitals on outsource basis. In the case at hand, the Applicant is engaged in supplying food and beverages at the canteen of their customers. The Applicant himself does not get paid for by the consumers of the food and beverages. The Recipient of the services are hospitals who enter into contract with the applicant. The charges are received from the hospitals on monthly basis on the coupons collected. In short, it is deciphered that the Applicant is vested with management of the canteen facilities. Supply of food is classified under Service Code No. 9963.

Held that— the supply of food by the applicant to hospitals fall under entry no. (ii) of S. No. 7 of Not. No. 11/2017 - State Tax (Rate) and is subject to 5% GST with the condition of non-availability of input tax credit.—Navneeth Kumar Talla, In Re… [2020] 25 TAXLOK.COM 100 (AAR-Hyderabad)