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TMI Blog2019 (2) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... d 28.06.2017 mentioned at serial number 66 heading number 9962 - The Preparation and serving of food under Government sponsored Anganwadi meals programme which is undertaken by the applicant who receives reimbursement from the government of Rajasthan @ ₹ 5.40 per pregnant women/ lactating nursing mothers/ adolescent girls and ₹ 5.25 per child per day. (as per the MOU dated 22.12.2010 between the TAPF and Director cum Deputy Secretary, Women Child Development Department, Government of Rajasthan). Therefore, the above said activity is against consideration and hence it is covered under the scope of 'supply' as per section 7 of CGST/RGST Act, 2017. Transfer of goods/capital equipments exclusively used for mid-day meal program and anganwadi meal programme - Held that:- As the activity of 'transfer' is covered under definition of supply under section 7 of CGST/RGST Act, 2017. Thus, the transfer of goods / capital equipments, exclusively used for Mid-Day Meal (MDM) program and Anganwadi meals program sponsored by Government, between different kitchens of applicant which are 'distinct persons' as per GST law is covered under the scope of 'sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fforts towards providing fresh and nutrition meals to children on every single school day. d. The applicant is also registered under GST for having rental income in Karnataka, Rajasthan, Uttara Pradesh and Telangana. e. The TAPF was formed by Trust deed dated 16 Oct 2001, amended on 20 Feb 2016 with the following objects: Object of the Trust: Relief of the poor, medical relief education for the public and any other object of general public utility. Without in any way taking away the generality of the meaning of the above expressions the objects particularly shall be: (a) To uphold and promote the Socio-Economic welfare of the underprivileged sections of the Society through education among hailing from poor families in rural areas and/or urban slums initially, especially those who come from such background in and around Bangalore and other towns and cities in particular to those attending Government and other schools mainly catering to such underprivileged student by providing sustenance and support through proviso of free food, meals, refreshment etc. during the school hours so that their continued attendance in school and prolongation of education are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days. j. Annual Audit Report - The Second Party will furnish an Annual Audit Report along with audited statement of accounts in terms of all grants received from the State Government, donations received in the name of Mid Day Meal Scheme, both in cash and kind, duly certified by an approved Auditor to the First Party. k. The applicant is operating 38 kitchens across 12 States in the country under the above Guidelines. For each of the kitchen a MOU strictly as per the guidelines of MHRD (as mentioned above) has been entered into with the respective authorities. The Applicant has entered into MOU with the respective State Government to serve Mid-Day Meal to children in government schools. The MOU is made under the framework of Revised Guidelines issued by Ministry of Human Resource Development, Govt, of India, issued from time to time. The copy of the latest Guidelines no. 223321 / 2017/ MDM - 2 is enclosed for ready reference. Some important part of the Guidelines are extracted below which has a bearing on the question raised for advance ruling. l. Responsibility of the State Government a. Cooking Cost - The State Government will pay/ reimburse the cooking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upported from donations. p. The Income tax department, Ministry of Finance, Government of India has recognized the program of Mid-Day Meal as a Program of National Importance and has sanctioned approval under section 35AC of the Income Tax Act, which enable donors to claim 100% deduction of the donation amount given to the Mid- Day Meal program of the applicant from their income. The original sanction was given in 2003 and was being periodically renewed for every 3 years with the latest extension for a period of 3 years commencing from 1st April 2015 to 31st March 2018, copy of sanction letter is enclosed. q. The applicant also carries out other charitable feeding programs such as Anganwadi feeding, wherein the part of the cost is met by Government Subsidy and the remaining cost is met through donations, private school feeding programs where entire 100% cost is met through donations. These programs are quite small in number and constitute about 10% of the total volume of meals. In none of the above programs, the applicant, charge/ receive any money or consideration from the beneficiaries. r. In course of providing Mid-Day Meal sometimes certain goods like spices, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; The word 'commerce' has several definitions which are as under:As per Business Dictionary, it means exchange of goods or services for money or in kind, usually on a large scale enough to require transportation from place to place or across city, state or national boundaries. Similarly, Wikipedia defines it as exchange of goods and services, especially on a large scale As per the documents submitted by the applicant we observe that the applicant is reimbursed as per the rate fixed by the Government of India or by the State Government for the transportation charges for lifting food grains from Food Corporation of India godown on basis of the release order. It is further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and wildlife; In view of the above, we observe that the activities undertaken by the applicant are not covered under the definition of charitable activities. E. The activities undertaken by the applicant under Mid-Day Meal Programme and Anganwadi meals programme is a supply in accordance with the Section 7 of CGST Act, 2017. However, MDM programme is taxed Nil by the virtue of Notification No. 12/2017 dated 28.06.2017 mentioned at serial number 66 heading number 9962. F. The Preparation and serving of food under Government sponsored Anganwadi meals programme which is undertaken by the applicant who receives reimbursement from the government of Rajasthan @ ₹ 5.40 per pregnant women/ lactating nursing mothers/ adolescent girls and ₹ 5.25 per child per day. (as per the MOU dated 22.12.2010 between the TAPF and Director cum Deputy Secretary, Women Child Development Department, Government of Rajasthan). Therefore, the above said activity is against consideration and hence it is covered under the scope of 'supply' as per section 7 of CGST/RGST Act, 2017. II. As the activity of 'transfer' is covered under definition of supply under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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