The Bangalore Bench of Authority for Advance Ruling (AAR) has held that providing catering services to educational institutions from 1st standard to 2nd standard Pre-university college would be exempted from Goods and Services Tax.
The applicant Annapoorneshwari Enterprises is a Partnership firm registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017.The applicant was engaged in the business of hotel and catering service. The applicant sought advance ruling as to whether providing catering services to Educational Institutions from 1st standard to 2nd PU College was taxable or not according to Notification No.12/2017-Central Tax Rate -under Heading 9992.
Pradip Kumar Shetty on behalf of assessee submitted that the applicant was carrying on the business of the hotel and they were supplying ready to eat breakfast, lunch to the KLE Independent PU College, Bengaluru. They were not collecting any charges from the students and They were billing the college and the college had been paying the amount.
He further submitted that in Heading 9992 entry services provided by way of catering to an educational institution, which had been providing services by way of preschool up to higher secondary school were exempted from GST.
The Bench of MP Ravi Prasad and Kiran Reddy held that providing catering services to Educational Institutions from 1st standard to 2nd PUC would not be taxable as per entry No.66 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 as amended further.
“Since the recipient of service is an institution providing education up to higher secondary school, it is covered under the definition of “educational institution” for the purposes of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017. Since the Applicant is providing ready to eat food by way of catering to a Pre-University College, the services provided by the applicant under question before us is also covered under entry No.66 of Notification No. 12/2017-Central Tax (Rate) dated: 28.06.2017 as amended further and hence exempted from GST” the Bench observed.
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