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

Circular No.: 149/05/2021-GST
Date of Circular: 17th June 2021
Relevant Sections and Rules:

• CGST Act, 2017:
  • Section 168(1): Power to issue instructions
• Notification Referenced:
  • Notification No. 12/2017–Central Tax (Rate), dated 28.06.2017
  • Entry 66(b)(ii): Catering services to educational institutions

Summary of Clarification:

1. Exemption on Supply of Food to Schools and Anganwadis:
   Representations were received seeking clarification on GST applicability on the supply of food under government-funded schemes such as the Mid-Day Meal Scheme and when funded through corporate donations.

The GST Council, in its 43rd meeting (28th May 2021), examined this issue.

2. Applicability of Entry 66(b)(ii) of Notification No. 12/2017-CTR:
   Entry 66(b)(ii) exempts from GST the catering services (including mid-day meal schemes) provided to educational institutions, whether sponsored by:

• Central Government
• State Government
• Union Territory

This exemption applies to schools and pre-schools.

3. Inclusion of Anganwadis as Educational Institutions:
   An Anganwadi provides pre-school non-formal education, qualifying it as an educational institution as defined in the notification.
   Therefore, serving of food to Anganwadis is also covered under the same GST exemption.
4. Conclusion on Exemption Scope:
   As per the Council’s recommendation, it is clarified that:

• Serving of food to educational institutions (schools, pre-schools, Anganwadis),
• Whether funded by the government or via corporate donations,
• Shall be exempt from GST under Entry 66(b)(ii) of Notification No. 12/2017-CTR.

Source: Circular No.: 149/05/2021-GST