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.

CBIC-190354/36/2021-TRU Section-CBEC
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi

Circular No. 149/1/2021-GST | Dated the 17th June, 2021

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

Madam/Sir,

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

Representations have been received seeking clarification regarding applicability of GST on the issues as to whether serving of food in schools under 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.

Applicability of GST on supply of food catering in an educational institution including Anganwadi

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 non-formal education. Hence, aganwadi is covered by the definition of educational institution (as pre-school).

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
Email: [email protected]
Tel: 011 2309 5558

7 GST Circulars issued by CBIC on 17th June 2021 as per decisions of 43rd meeting of GST Council held on the 28th May, 2021

Title Notification No. Date
GST rate on laterals/parts of Sprinklers or Drip Irrigation System Circular No. 155/11/2021-GST 17/06/2021
No GST on guaranteeing of loans by Govt for their undertaking or PSU Circular No. 154/10/2021-GST 17/06/2021
GST on milling of wheat into flour or paddy into rice for distribution by Govt Circular No. 153/09/2021-GST 17/06/2021
GST on works contract service by way of construction of rope way Circular No. 152/08/2021-GST 17/06/2021
GST on services provided by Central or State Boards Circular No. 151/07/2021-GST 17/06/2021
GST on annuities paid for construction of road Circular No.150/06/2021-GST 17/06/2021
No GST on supply of food in Anganwadis and Schools Circular No. 149/1/2021-GST 17/06/2021

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