AAR Holds Bakery Products as ‘Supply of Goods’, Fresh Pizza Preparation as ‘Restaurant Service’

The company, M/s Cremeux Bakeries Private Limited (applicant), has filed the present application of Advance Ruling under section 97 of the Goa Goods and Services Tax (GST) Act 2017 and the Central Goods and Services Tax (CGST) Act 2017, seeking an advance ruling. The case was heard on March 27, 2026, by the bench comprising Shri Vishant S. N. Gaunekar, Additional Commissioner of SGST, Goa, and Smt Lakshmi Radhakrishnan, Joint Commissioner of CGST, Goa.

The applicant company possesses GSTIN 30AAFCC2111E1ZO and is located at H. No. 171/5, СММ Arena Complex, 2nd Floor Vaddy, Merces, Tiswadi, North Goa 403 005. The applicant is a registered taxable person engaged in the business of manufacturing food products such as cakes, pastries, sandwiches, savouries, biscuits, bread, etc. Concerning its business, the applicant had some questions; clarifying the same, it has sought the present advance ruling.

Questions Raised Before Goa AAR:

The applicant has asked the following questions seeking the Goa Authority for Advance Ruling:

“Question: 1. Whether the sale of bakery products such as cakes, pastries, sandwiches, savouries, biscuits, slice cakes, bread, rusks and other ready-made items, which are fully manufactured at the Corlim factory and sold through bakery outlets without any cooking, preparation or processing, constitutes a supply of goods under GST?

Question 2. Whether preparation and sale of semi-finished goods such as pizzas at the outlets, wherein pizza base and toppings are supplied from the factory and are blended/prepared at the outlet upon customer order, constitute restaurant service?

Question 3. Whether the applicant is permitted under GST law and based on the principles laid out in circular 164-para 3 and para 4 to
1. Charge GST as goods for items sold without preparation, and
2. Charge GST as services for items involving preparation/cooking subject to maintaining a separate billing series, accounting records, etc.?”

Clarification Given by Goa AAR:

The Goa Authority for Advance Ruling (AAR) has given the following clarification to the questions asked by the applicant:

Answer 1: Yes, all the bakery products manufactured by the applicant will be considered a supply of goods under GST, in accordance with Paragraph 4.2 of Circular No. 164/20/2021-GST dated October 6, 2021. These goods are also liable for GST imposition; the rate will apply as per the HSN classification of particular goods. Other than these, any other goods that are manufactured at a place other than the restaurant premises and sold without any related service will also constitute a supply of goods under GST.

Answer 2: Yes, the sale and preparation of semi-finished goods like pizzas at the outlets will be considered under restaurant service, regardless of whether they are consumed by the customer at the restaurant location or taken away.

Answer 3: Yes, the applicant is allowed to charge GST for goods (for items sold without preparation) and services (for items involving preparation/cooking, subject to maintaining a separate billing series, accounting records, etc.) both under GST law and based on the principles laid out in circular 164, paragraphs 3 and 4. However, there is a condition that the applicant must fulfil. As the applicant will be under statutory compulsion to adhere to all the provisions of the GST law, it will need to maintain a separate series of tax invoices for better clarification.

Refer to the official advance ruling for complete information.