The Authority of Advance Ruling (AAR), Karnataka ruled that the supply services of Food and Drinks to educational institutions are exempted from Central Goods and Service Tax (CGST) & State Goods and Service Tax (SGST).
The applicant, M/s Mahalakshmi Mahila Sangha is engaged in providing catering services to educational institutions sponsored by State/ Central Union territory which are exempted services under SI.No.66 of the Notification No.12/2017 Central Tax (Rate) dated 28th June 2017.
The applicant sought advance ruling on the issue of whether activities of providing catering services to educational institutions are exempted service under Serial No. 66 of the Notification No. 12/2017-Central Tax (Rate). As per Circular 65/39/2018, TDS under GST is applicable only for taxable supply contracts, and as the applicant is the exempted service provider. TDS is not applicable to our services (HSN Code 9992).
The Authority consisting of members M.P. Ravi Prasad and Mashud Ur Rehman Faruqui ruled that the supply of services made by the applicant in the form of supply of food and drinks to the educational institutions is covered under entry no. 66 of Notification No. 12/2017- Central Tax (Rate) and entry no.66 of Notification (12/2017) Ng. FD 48 CSL 2017 and are hence exempted from CGST and SGST.
“The amount received for such exempted service as covered under para 1 above is not liable for tax deduction at source under section 51 of the CGST Act and section 51 of KGST Act,” the AAR further ruled.
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