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TMI Blog2020 (5) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... iding food cooked outside the premises or from one school to another. Hence the applicant has to prepare the food in the school premises and supply it to the students of the school for a monthly consideration. Further, it is seen that the students to whom the service is provided are from the Primary School category. Hence the service is a catering service provided to an educational institution which is a primary school and hence is covered under the Entry No.66 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time and is exempted from the payment of GST. The provision of tax deduction at source is applicable on the payment made to a supplier of taxable services and since the applicant is supplying e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly for taxable supply contracts and as we are the exempted service provider. TDS is not applicable for our services (HSN Code 9992) 4.The applicant furnishes some facts relevant to the stated activity. a. The applicant states that he is engaged in providing catering services to educational institutions sponsored by State/ Central/ Union territory which is exempted services under SI.No.66 of the Notification No.12/2017-Central Tax (Rate) dated 28thJune, 2017. b. The applicant states that as he is doing exempted services (HSN Code 9992), TDS for GST on their services are not to be deducted from their bill. As per Circular 65/39/2018, TDS under GST is applicable only for taxable supply contracts and they are providing exempted ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ational institutions. The claim of the applicant is that this is exempt from tax as it is covered under entry no.66 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 6.3 Entry No.66 of Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017 reads as under: 66 Heading 9992 Services provided (a) By an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee (b) To an educational institution, by way of, - (i) Transportation of students, faculty and staff (ii) Catering, including any mid-day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... School for Children of Specified Categories, Nazarbad North Zone, and K.G.B.V. Residential School, Kergalli, Mysore Rural and K.G.B.V. Type-4 M.S.A. Residential School, Varakoodu, Mysore Rural. 2. The EMD is collected separately for each of the schools in question and the agreements are signed separately for each of the schools. 3. The condition of the agreement is to separately provide food for each of the residential school and can use the facilities already available in such schools. The agreement for catering would be between the Heads of the Schools and the bidders. 7.2 Another tender document which is related to supply of food under Comprehensive Education Karnataka to 100 students each of K.G.B.V. Residential Scho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended from time to time and is exempted from the payment of GST. 9. Section 51(1) of CGST Act, 2017 states as under Section 51(1): Notwithstanding anything to the contrary contained in this Act, the Government may. . . . . . . . . . . .to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereinafter in this section referred to as the deductee ) of taxable goods or services or both , where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: . . . From the above, it is clear that the provision of tax deduction at source is applicable on the payment made to a supplier of taxa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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