India Entry & Business Startup Consultings

Clarification Regarding Applicability of GST on Supply of food in Anganwadis and Schools

The Central Board of Indirect Taxes and Customs (“CBIC”) has issued Circular No. 149/05/2021-GST dated 17th June 2021 to provide clarification whether serving of food in Anganwadis and schools under Mid-Day Meals Scheme would be exempt if such supplies are funded by government grants and/or corporate donations.

As per Entry No. 66 clause (b) (ii) of Exemption Notification No. 12/2017:

“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.”

It has been clarified that any catering service provided to an educational institution is exempt from GST. It is further mentioned that such exempt service includes mid- day meal service provided to an educational institution. 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 nonformal education. Hence, anganwadi is covered by the definition of educational institution as pre-school

Further it has been clarified that services provided to an educational institution that includes anganwadi by way of catering is exempt from levy of GST irrespective of its source of funding from government grants or corporate donations.


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