DYKS

15 Shares
facebook sharing button Share
twitter sharing button Tweet
email sharing button Email
sharethis sharing button Share
linkedin sharing button Share
06 July 2021

Serving of Food in Schools under Mid-day Meals Scheme- Whether Exempt of Taxable? (Circular No. 149/05/2021-GST).

In the 43rd GST Council Meeting held on 28th May’2021, a clarification was sought regarding the applicability of GST on serving of food in schools under Mid-day meals scheme if such supplies are funded by Government Grants and/or Corporate Donations.

It was clarified the services provided to an educational institution by way of serving of food 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) of Notification No. 12/2017-CT (R) which 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.

The scope of the entry is wide enough to cover serving of any food to a school, including pre-school. Further, an Anganwadi inter alia provides pre-school non- formal education. Hence, Anganwadi is covered by the definition of educational institution (as pre-school).

Basis the above, it can be concluded that serving of food to an Anganwadi shall be covered by said exemption, whether sponsored by government or through donation from corporates.