In re Raibag Taluk MSPC (GST AAR Karnataka)
In the recent GST Advance Ruling (AAR) for Raibag Taluk Mahila Supplementary Production Center (MSPC), key issues surrounding tax exemptions and product classifications under GST notifications were addressed. This ruling provides clarity on various aspects including exemptions for services provided to educational institutions, the classification of products like “Pushti”, and the applicability of specific GST notifications and circulars.
1. GST Exemption under Notification No. 12/2017-Central Tax (Rate)
The applicant sought clarification on whether they qualify for exemptions under Serial No. 66 clause (b)(ii) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. This entry generally provides exemptions for services rendered to educational institutions, including catering services under government-sponsored mid-day meal schemes.
However, the ruling clarified that this notification applies specifically to services and not to the supply of goods. As the applicant is involved in supplying goods (i.e., supplementary products) and not services, the exemption under this notification is not applicable to their case.
2. Applicability of Circular No. 149/05/2021-GST
Circular No. 149/05/2021-GST, dated 17.06.2021, elaborates on the GST exemption for services provided to educational institutions by way of catering, including mid-day meals. The circular asserts that such exemptions apply to pre-schools and schools, including Anganwadis, if funded by government or corporate donations.
