Supplying meals to varsities underneath mid-day meal scheme, pre-schools and anganwadis is exempt from GST, the Central Board of Indirect Taxes and Customs (CBIC) has mentioned.
Issuing a set of clarification on sure selections taken by the GST Council in its forty third assembly on May 28, the CBIC mentioned it had obtained representations concerning applicability of GST on the problems as as to if serving of meals in colleges underneath mid-day meals scheme could be exempt if such provides are funded by authorities grants and/or company donations. Under the products and providers tax (GST), any catering service, together with mid-day meals, offered to an academic establishment is exempt from the levy.
The CBIC mentioned this might cowl serving of any meals to a college, together with pre-school. Further, an anganwadi inter alia supplies pre-school non-formal schooling and therefore, anganwadi is roofed by the definition of academic establishment (as pre-school).
On June 17, it said, “… it’s clarified that providers offered to an academic establishment by means of serving of meals ( catering together with mid- day meals) is exempt from levy of GST no matter its funding from authorities grants or company donations.
“Educational institutions as defined in the (GST) notification include anganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates.”
In a separate clarification on levy of GST on provide of varied providers by the Central and State Board, the CBIC mentioned GST is exempt on providers offered by central or state boards by means of conduct of examination for the scholars.
