MANUFACTRING OF FOOD ITEMS WITHOUT SITTING ARRANGEMENTS

This discussion clarifies GST rates for food item manufacturing. Generally, manufacturing food items falls under a 1% GST composition scheme, excluding specific items like ice cream, pan masala, tobacco, and aerated water. However, if food is supplied with sitting arrangements, it's treated as a service and taxed at 5%. Even contract manufacturing or supplying cooked food to another party for resale may be subject to the 5% rate, as the GST Act often applies 5% to food supplied for human consumption.