Page 12 - Chap1 Charge of Tax & Concept of Supply

Ü It retains the character of a gift/donation.
Ü It is not for advertisement or commercial gain.
Ü Since the name "Rudraksh Kapoor" is displayed only as an expression of gratitude, GST is not
applicable.
(b) If "Rudraksh Publishing House" is Mentioned:
The donation becomes taxable if the business name is displayed, as it serves as advertisement.
Legal Provisions:
Ü Displaying a business name suggests a commercial benefit, making it a supply of service.
Ü GST is applicable as the donation now serves as a consideration for brand promotion.
Conclusion:
Ü No GST if only Rudraksh Kapoor’s name is displayed.
Ü GST is applicable if Rudraksh Publishing House is mentioned.

Q.17: Miss sheetal is planning to run an eating stall at a cinema hall on contract basis where the cinema hall is owned
by some other person. She would be supplying food and beverages independent of cinema exhibition service as
tickets would not sold by her. She wants to get an advice on the taxability of supply of food and beverages at the
cinema hall.
Answer:- Legal Provision:-
Ü A cinema operator can either:
(i) Operate refreshment stalls/kiosks/counters/restaurants themselves, or
(ii) Give them on contract to a third party.
Ü As per CBIC clarification, the supply of food and beverages in a cinema hall is considered a "restaurant service" if:
a) The food and beverages are supplied as part of a service, and
b) They are provided independently of the cinema exhibition service.
Ü If cinema tickets and food/beverages are sold together as a bundled supply and qualify as a composite supply, the entire
transaction will be taxed at the GST rate applicable to the exhibition of cinema (principal supply).
Discussion & Conclusion:
Ü In this case, Miss Sheetal plans to run an eating stall at the cinema hall on a third-party contract basis.
Ü The food and beverages supplied by her would be separate from the cinema exhibition service.
Ü Since the cinema operator will sell the tickets and Miss Sheetal will independently sell food and beverages, the two are not
naturally bundled.
Ü Therefore, the supply of food and beverages by Miss Sheetal in the cinema hall will be taxed as "restaurant service"
under GST.

08. Combined Questions:-
Q.18: Power Engineering Pvt. Ltd., a registered supplier, is engaged in providing expert maintenance and repair
services for large power plants that are in the nature of immovable property, situated all over India. The company
has its Head Office at Bangalore, Karnataka and branch offices in other States. The work is done in the following
manner.
The company has self-contained mobile workshops, which are container trucks fitted out for carrying out
the repairs. The trucks are equipped with items like repair equipments, consumables, tools, parts etc. to handle a
wide variety of repair work.
The truck is sent to the client location for carrying out the repair work. Depending upon the repairs to be done, the
equipment, consumables, tools, parts etc. are used from the stock of such items carried in the truck.
In some cases, a stand-alone machine is also sent to the client's premises in such truck for carrying out the repair
work.
The customer is billed after the completion of the repair work depending upon the nature of the work and
the actual quantity of consumables, parts etc. used in the repair work.
Sometimes the truck is sent to the company's own location in other State(s) from where it is further sent to
client locations for repairs.
Work out the GST liability [CGST & SGST or IGST, as the case may be] of Power Engineering Pvt. Ltd.,
Bangalore on the basis of the facts as prescribed, read with the following data for the month of November 20XX.
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