CIRCULAR NO-149/2021-CBIC-190354/36/2021-TRU Section-CBEC-Clarification regarding applicability of GST on supply of food in Anganwadis and Schools.

Circular No. 149/05/2021-GST

CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance
Department of Revenue

North Block, New Delhi,Dated the 17th June, 2021


The Principal Chief Commissioners/ Chief Commissioners/ Principal
Commissioners/ Commissioner of Central Tax (All) /
The Principal Director Generals/ Director Generals (All)

Sub– Clarification regarding applicability of GST on supply of food in
Anganwadis and Schools -reg.

Representations have been received seeking clarification regarding
the applicability of GST on the issues as to whether serving of food in schools  under the Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations. The issue was examined by GST Council in its 43rd meeting held on 28th May, 2021.

2. Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate) dated
28th June, 2017, 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. This entry applies to pre-school and schools.

3. Accordingly, as per said entry 66, any catering service provided to an
educational institution is exempt from GST. The entry further mention that such
exempt service includes mid- day meal service as specified in the entry. The scope of this entry is thus wide enough to cover any serving of any food to a school, including pre-school. Further, an Anganwadi interalia provides pre-school nonformal education. Hence, aganwadi is covered by the definition of educational institution (as pre-school)

Circular No. 149/05/2021-GST

4. Accordingly, as per recommendation of the GST Council, 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 [under said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates.

5. Difficulty if any, in the implementation of this circular may be brought to the
notice of the Board.

Yours faithfully,

(Rajeev Ranjan)
Under Secretary, TRU
Tel: 011 2309 5558

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