Clarification regarding applicability of GST on supply of food in anganwadis and schools - GST - States - 05/2021 - GST (State)

No. F.-1-11(8)-TAX/GST/2021/20971-21070 GOVERNMENT OF TRIPURA OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX PANDIT NEHRU COMPLEX, GURKHABASTI AGARTALA, TRIPURA WEST, PIN-799006 Dated, Agartala, the 28 June, 2021. Circular No. 05/2021 - GST (State) Subject : Clarification regarding applicability of GST on supply of food in anganwadis and schools Regarding. The Government of India, Ministry of Finance, Department of Revenue vide Circular No. 149/05/2021-GST, dated 17th June, 2021 has issued a clarification regarding applicability of GST on supply of food in Anganwadis and Schools, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 149/05/2021-GST, dated 17th June, 2021 by the Government of India, Ministry of Finance, Department of Revenue. Encl : Circular No. 149/05/2021-GST (Dr. Vishal Kumar, IAS) Chief Commissioner of State Tax Government of Tripura Circular No. 149/05/2021-GST CBIC-190354/36/2021-TRU Section-CBEC Government of India Ministry of Finance Department of Revenue North Block, New Delhi, Dated the 17th June, 2021 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Sub Clarification regarding applicability of GST on supply of food in Anganwadis and Schools -reg. Representations have been received seeking clarification regarding applicability of GST on the issues as to whether serving of food in schools under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021. 2. Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017, exempts Services provided to an educational institution, by way of catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory. This entry applies to pre-school and schools. 3. Accordingly, as per said entry 66, any catering service provided to an educational institution is exempt from GST. The entry further mention that such exempt service includes mid- day meal service as specified in the entry. The scope of this entry is thus wide enough to cover any serving of any food to a school, including pre-school. Further, an Anganwadi interalia provides pre-school nonformal education. Hence, aganwadi is covered by the definition of educational institution (as pre-school) 4. Accordingly, as per recommendation of the GST Council, it is clarified that services provided to an educational institution by way of serving of food ( catering including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates. 5. Difficulty if any, in the implementation of this circular may be brought to the notice of the Board. Yours faithfully, (Rajeev Ranjan) Under Secretary, TRU Email: [email protected] Tel: 011 2309 5558