Description

Date – 19th Jun 2021

Under the mid-day meal scheme the supply of food to schools, pre-schools and anganwadis is exempt from GST, the Central Board of Indirect Taxes and Customs (CBIC). Issuing a group of clarification on certain decisions taken by the GST Council in its 43rd meeting on May 28, 2021 the CBIC had received representations regarding applicability of GST on the problems of 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. Under the goods and services tax (GST), any catering service, including mid-day meals, provided to an academic institution is exempt from the levy.

The CBIC said on June 17, 2021"...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. 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,".

"18 percent GST would be levied to other services provided by such Boards, like providing accreditation to an institution or to a professional"

EY Tax Partner Abhishek Jain said- “The clarification by the govt that the GST exemption on catering services provided to educational institutions will have a good ambit are going to be much appreciated by the stakeholders. This clarification will help reduce the value on account of GST, for the tutorial institutions involved in providing such meals, thereby saving on the corpus of such institutes"

" GST shall not apply to any fee or any amount charged by such boards for conduct of such examinations, including entrance examinations,"

The CBIC said GST is exempt on services provided by central or state boards (including the boards like NBE) by way of conduct of examination for the scholars. It includes conduct of entrance exam for admission to the institution. GST is also exempt on input services associated with admission to, or conduct of examination, like online testing service, result publication, printing of notification for examination, admit card and questions papers etc., when provided to such Boards.

For more Updates and Information - Click here 

For access to more than 10,000 Colleges - Click here

For Latest Sarkari Jobs - Click here

For Comprehensive Preparation of Competitive Exams - Click here

For School Studies and Exams Preparation across Eight Boards - Click here