No Decision on GST Rate for Club Party Catering After Withdrawal
The Maharashtra AAR permitted Shri Sham Caterers to withdraw its application regarding GST rates for club catering without issuing a ruling.
- Ruling
- NO.GST-ARA-42/2017-18/B- 49 dated 15.06.2018
- Dated
- 15 Jun 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Business asked about the GST rate for catering parties inside club premises.
- The applicant voluntarily withdrew the application before a decision was made.
- Authority allowed the withdrawal without commenting on the applicable tax rate.
- The order creates no legal precedent for catering tax rates under GST.
In short
Shri Sham Caterers approached the Maharashtra Authority for Advance Ruling (AAR) under order GST-ARA- 42/2017-18/B- 49 to confirm whether serving food and drinks at parties within a club attracts 5% Goods and Services Tax (GST). During the preliminary stage, the firm decided not to pursue the question and filed a written request to cancel its application. The authority accepted the request and closed the case without giving any opinion on the correct GST rate.
What has changed
How it worked before
Caterers and club managers were uncertain whether serving food at private functions inside club premises qualified as regular restaurant services or outdoor catering.
What has changed
Nothing changed in tax law because the authority did not issue a decision on the merits. The application was disposed of purely as withdrawn, meaning this order cannot be cited as authority for any GST rate.
Who this affects
Caterers, restaurant operators, and club management businesses that provide food and beverage services for private events held within club premises.
An example
A catering firm in Mumbai contracts to supply food for a party inside a private sports club. The owner wants to know whether to charge 5% or 18% GST on the invoice. Finding this order, the owner sees that the applicant withdrew the case before the authority answered the question. Consequently, the owner cannot use this order to justify their tax rate and must rely on standard GST rules.
What you should do
Do not rely on this order to set your GST rates or prepare tax filings, as it contains no decision. You must determine your GST rates based on standard government tax notifications or seek your own advance ruling. Remember that an advance ruling only binds the business that asked for it and its local tax office.
If you do nothing
Assuming this document grants permission to charge a specific GST rate is a mistake that could lead to tax demands. If you underpay GST based on a misunderstanding of a withdrawn ruling, tax officers can require you to pay the unpaid tax balance along with interest and penalties. A withdrawn ruling offers no protection during a tax assessment.
The terms explained
- advance ruling
- A written clarification issued by tax authorities to a specific business explaining how GST law applies to their described business activity.
- preliminary hearing
- An initial meeting where tax authorities check whether an application meets the basic legal requirements to be accepted and decided.
- precedential value
- The legal principle where an earlier official court or tribunal decision serves as an authoritative rule for deciding future similar cases.
The ruling in detail
Authority for Advance Ruling
SHRI SHAM CATERERS
NO.GST-ARA-42/2017-18/B- 49 dated 15.06.2018 · Maharashtra
Questions before the authority
- Whether the food and beverages served at the time of parties within the premises of the club is liable to tax at CGST 2.5% + SGST 2.5%. If not what is the rate of tax ?
Facts
The applicant is engaged in providing restaurant services and serving food and beverages for parties within club premises. It filed an application for advance ruling to determine the correct rate of tax applicable to these services. Subsequent to the preliminary hearing, the applicant submitted a letter seeking permission to withdraw its application.
Ruling
The Authority allowed the applicant to **withdraw the application voluntarily and unconditionally**. The proceeding was disposed of without entering into the merits or detailed facts of the case.
Reasoning
The applicant realized during the preliminary hearing that the issue regarding catering services in club premises was already settled under earlier service tax laws merged into GST. Consequently, the applicant submitted a written request dated May 15, 2018, seeking withdrawal. The Authority granted permission to withdraw under Section 98 of the CGST Act and MGST Act without rendering a substantive opinion.
Provisions relied on
- Section 97 of the Central Goods and Services Tax Act, 2017
- Section 97 of the Maharashtra Goods and Services Tax Act, 2017
- Section 98 of the Central Goods and Services Tax Act, 2017
- Section 98 of the Maharashtra Goods and Services Tax Act, 2017
For the practitioner
This order holds **no precedential value** regarding the GST rate on outdoor or club party catering services because it was disposed of purely as withdrawn. Tax practitioners cannot rely on this decision for tax rate classification.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/mah_aar_42_2017-18_b-49_15.06.2018_ssc.pdf
Legibility of the scan, as read: high.
Prepared 19-10-2026.
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