2023 (1) TMI 1163 - AAR - GST

Exemption from GST - providing catering services to Educational Institutions from 1st standard to 2nd PUC - applicability of N/N. 12/2017-Central Tax Rate -under Heading 9992 - recipient of service - HELD THAT - The applicant is billing to the KLE Independent PU College and the consideration is payable by the said college. Hence the recipient of the service in question is the KLE Independent PU College. Since the recipient of service is an institution providing education up to higher secondary school, it is covered under the definition of educational institution for the purposes of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 - Since the Applicant is providing ready to eat food by way of catering to a Pre University College, the services provided by the applicant under question before us is also covered under entry No.66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended further and hence exempted from GST.

Summary

Issues:
1. Admissibility of the application under Section 97(2)(e) of the CGST Act, 2017.
2. Taxability of catering services provided to Educational Institutions under Notification No. 12/2017-Central Tax Rate.

Admissibility of the Application:
The issue of determining the liability to pay tax on goods or services falls under Section 97(2)(e) of the CGST Act, 2017, making the application admissible. The applicant, a partnership firm engaged in the hotel and catering business, sought an advance ruling regarding the taxability of catering services provided to Educational Institutions.

Taxability of Catering Services:
The applicant supplied ready-to-eat breakfast and lunch to an Educational Institution, KLE Independent PU College, without charging students directly. The applicant questioned the tax liability on catering services provided to Educational Institutions from 1st standard to 2nd PUC under Notification No. 12/2017-Central Tax Rate. The ruling analyzed the relevant entry No. 66 of the notification, which exempts services like catering to Educational Institutions offering pre-school education up to higher secondary school from GST.

Recipient and Educational Institution Definitions:
The ruling clarified that the recipient of the service, in this case, the KLE Independent PU College, is liable to pay for the catering services provided. The definition of an "educational institution" under the notification includes institutions providing education up to higher secondary school, encompassing the recipient institution. As the applicant's services fall under catering for a Pre University College, they are covered under the exempt category specified in the notification.

Conclusion:
The ruling concluded that providing catering services to Educational Institutions from 1st standard to 2nd PUC is exempted from GST as per entry No. 66 of Notification No. 12/2017-Central Tax Rate. The applicant's services to the Pre University College fell within the exempt category, aligning with the provisions outlined in the notification.