In matter of Kundan Misthaan Bhandar, the Appellate Authority for Advance Rulings for the State of Uttarakhand Goods and Services Tax has stated that sale of sweets, namkeens, cold drinks and other edible items through restaurant will be treated as ‘composite supply’, with restaurant supply being the principal service. Existing GST rates on restaurant service will also be applicable on all such sales and no input credit will be allowed. However, sale of same items from the sweetshop counter will be treated as supply of goods with applicable GST rates of the items being sold and input credit will be allowed on such supply. Applicant was also asked to maintain separate records for restaurant and sweetshop with respect to input and output and billings as well as other accounting records.
