United Breweries Limited

The AAAR modified the ruling rendered by the AAR is as under: - 
(a) The activity engaged in by the Appellant by way of granting the Central Brewing Unit the right to manufacture and supply beer bearing its brand name, in return for a consideration, is a supply of service as mandated in Section 7 of the CGST Act 2017, read with Clause 5(c) of the Schedule II of the said Act. 
(b) The supply of service by the Appellant is taxable to GST in terms of Section 9 of the CGST Act. 
(c ) The service supplied by the appellant is classified under the Service Code 999799 as “other services nowhere else classified” 
(d) The amounts received by the appellant from the contract brewing units under the agreement in the nature of Brand Fee and reimbursement of expenses is termed as a consideration for the supply of service and is chargeable to GST at the applicable rate of 18%.