Facts Involved: The Bengal Rowing Club ("Applicant")  is providing its members privileges and amenities such as swimming facility, gymnasium, indoor games, restaurant services, etc.

Issue Involved: The applicant  has sought an advance ruling to determine the classification and tax rate in respect of supply of food at events organized in the club premises & the proportion of input tax credit admissible for services other than the supply of food.

Legal position: Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition halls, Events, Conference, Marriage Halls and other outdoor/indoor functions that are event based and occasional in nature.

Held: The Authority for Advance Ruling, West Bengal held that the above services are taxable GST rate of 18%. The applicant filed an appeal before the Appellate Authority for Advance Ruling, West Bengal.

The Appellate Authority for Advance Ruling, West Bengal observed that as per Rates notification of services under GST, any supply of food or beverage at any event, whether or not served at an outdoor or an indoor function is taxable at 18%. It is not restricted to exhibition or marriage halls but includes all functions which are occasional in nature irrespective of whether these are held outdoor or indoor. The qualifying criteria are that services must be event based and occasional in nature. The get-togethers and parties are social functions and are occasional in nature. Therefore, the supply of food by the club at the events cannot be treated as regular restaurant services.

The Appellate Authority for Advance Ruling, West Bengal held that supply of food at events organized in the club premises is taxable at rate of 18%.