Government of India, Ministry of Finance, Department of Revenue has clarified on 17th June 2021 on various matter regarding applicability of GST / applicable rate of GST.
A glimpse of the circulars are provided here as under:
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PARTICULARS |
CIRCULAR REFERENCE NO. |
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Clarification regarding
applicability of GST on supply of food in Anganwadis and Schools 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 entry 66
(b)(ii)]. [Reason- 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 is exempt under
Entry 66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate)
dated 28th June, 2017] Serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates. [Reason- Educational institutions as defined
in the notification Entry 66 clause (b)(ii) of notification No.
12/2017-Central Tax (Rate) dated 28th June, 2017 include aganwadi.] |
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Clarification regarding applicability of GST on the
activity of construction of road where considerations are received in
deferred payment (annuity). It
is clarified that Entry 23A of
notification No. 12/2017-CT(R) does not exempt GST on the annuity
(deferred payments) paid for construction of roads. [Reason- the entries 23 and 23A of the
said notification exempt Services under Heading 9967 which covers access
to road or bridge, whether the consideration are in the form of toll or
annuity while construction of road
is covered under heading 9954 & Entry 23A does not cover Heading
9954] |
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Clarification regarding GST on supply of various services
by Central and State Board (such as National Board of Examination) It includes
services such as entrance examination
( on charging a fee) for admission to educational institution, input services
for conducting such entrance examination for students, accreditation of
educational institutions or professional so as to authorise them to provide
their respective services.
[Reason- Entrance Examination fees are exempt
under S. No. 66 (aa) of notification No. 12/2017-CT(R) and Input services relating to admission or conduct of examination
are exempt under S. No. 66 (b) (iv) of notif No. 12/2017- CT(R)] |
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Clarification regarding rate of tax applicable on
construction services provided to a Government Entity, in relation to
construction such as of a Ropeway on turnkey basis GST shall be charged @ 18% and
shall under way
shall fall under entry at sl. No. 3(xii) of notification 11/2017-(CTR) [Reason- entry No 3 (vi) of notification No.
11/2017-CT (R) dated 28.06.2017 which provides for GST @12% does not apply to any
works contract that is meant for the purposes of commerce, industry, business
of profession, even if such service is provided to the Central Government,
State Government, Union Territory, a local authority a Governmental Authority
or a Government Entity. Further, civil constructions, such as rope way for tourism
development shall not be covered by said entry 3(vi) not being a
structure that is meant predominantly for purposes other than business. While
road, bridge, terminal, or railways are covered by entry No. 3(iv) and
3(v) of said notification, structures like ropeway are not covered by
these entries too.] |
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GST on milling of wheat into flour or paddy into rice for
distribution by State Governments under PDS In
case the supply of service by way of milling of wheat into flour or of paddy
into rice, is not eligible for exemption under Sl. No. 3 A of Notification
No. 12/2017- Central Tax (Rate) dated 28.06.2017 for the reason that value of
goods supply in such a composite supply exceeds 25%, then the applicable GST
rate would be 5% if such composite supply is provided to a registered person,
being a job work service It
is a matter of fact as to whether the value of goods in such composite supply
is up to 25% and requires ascertainment on case-to-case basis. [Reason- Entry at Sl. No. 3A of Notification
No. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts “composite supply of
goods and services in which the value of supply of goods constitutes not more
than 25 per cent of the value of the said composite supply provided to the
Central Government, State Government or Union territory or local authority or
a Governmental authority or a Government Entity by way of any activity in
relation to any function entrusted to a Panchayat under article 243G of the
Constitution or in relation to any function entrusted to a Municipality under
article 243W of the Constitution] |
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GST on service supplied by State Govt. to their
undertakings or PSUs by way of guaranteeing loans taken by them It is exempt under Entry No. 34A of Notification
no. 12/2017-Central Tax (Rate) dated 28.06.2017 [Reason- the above mentioned services are specifically
exempt under the said entry] |
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Clarification regarding GST rate on laterals/parts of
Sprinklers or Drip Irrigation System laterals/parts
to be used solely or principally with sprinklers or drip irrigation system
attract GST @
12% [Reason- Entry No. 195B under Schedule II of
notification No. 1/2017- Central Tax (Rate), dated 28th June, 2017, has been
inserted, vide notification No. 6/2018- Central Tax (Rate), dated 25th
January, 2018, with an intention to cover laterals (pipes to be used solely
with with sprinklers/drip irrigation system) and such parts that are suitable
for use solely or principally with 'sprinklers or drip irrigation system', as
classifiable under heading 8424] |
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