Gst rate for chocolate fudge for on demand delivery

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2017
I am online chocolate fudge seller made in my kitchen unit using e-commerce platform. I want to register for GST. What GST rate is applicable for me? Can I use non-AC restaurant code ( service code - 996331) and apply 12% GST rate? OR HSN code of chocolate product - i.e. 28% to be applied?
Can anyone guide?

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 July 2017 If you are providing service of ambience or seating then you can charge rate of restaurant otherwise it is goods and 28% shall apply. In your case you are selling goods through e-commerce therefore in my opinion it is 28%.

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2017 Since I am supplying only online by making it in a cloud kitchen, actually it is delivery only restaurant. What I understand is that such suppliers like Twigly, Fasso are charging 12%. Hence I request for your expert input.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 July 2017 You yourself deliver it??

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2017 No sir, it is delivered by third party players like Jugnoo and Runnr.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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23 July 2017 As per GST law where you are selling food items as goods and providing any service along with it like seating and ambience in restaurant or delivery then it will said to be service, otherwise it will remain goods. The rates will apply accordingly.

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2017 Sir, Thanks for your reply. Mine is delivery only restaurant. I am responsible for delivery to the customer and I charge the delivery fees and recover from the customer. Depending on the situation, at times I use my own delivery fleet and at times I use Jugnoo or runnr service. So, with this way, should I charge 12% GST using service code 996331 under GST.
Will be grateful for your confirmation.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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25 July 2017 Your code is right but the rate should be 18%. Check notification no. 11/2017 of central tax rate. You will come under 9963 (ix) point as you are not a restaurant or an eating facility. You can mail me for the said notification.