GST relief to food supply for mid-day meals, pre-schools, anganwadis: CBIC

Supplying food to faculties below mid-day meal scheme, pre-schools and anganwadis is exempt from GST, the Central Board of Indirect Taxes and Customs (CBIC) has mentioned.

Issuing a set of clarification on sure selections taken by the GST Council in its forty third meeting on May 28, the CBIC mentioned it had obtained representations relating to applicability of GST on the problems as to whether or not serving of food in faculties below mid-day meals scheme can be exempt if such provides are funded by authorities grants and/or company donations. Under the products and companies tax (GST), any catering service, together with mid-day meals, offered to an academic establishment is exempt from the levy.

The CBIC mentioned this may cover serving of any food to a college, together with pre-school. Further, an anganwadi inter alia supplies pre-school non-formal schooling and therefore, anganwadi is roofed by the definition of instructional establishment (as pre-school).

On June 17, it acknowledged, “… it’s clarified that companies offered to an academic establishment by the use of serving of food ( catering together with mid- day meals) is exempt from levy of GST no matter its funding from authorities grants or company 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.”

In a separate clarification on levy of GST on supply of varied companies by the Central and State Board, the CBIC mentioned GST is exempt on companies offered by central or state boards by the use of conduct of examination for the scholars.

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