Clarification regarding applicability of GST on supply of food in Anganwadis and Schools

Circular Number 149/05/2021-GST dated 17th June 2021

  1. 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.
  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