The Principal, Government Industrial Training Institute, Kalamassery awarded a contract to the applicant, Hazrath Valiyaparambil Azeez for the supply of Boiled milk without sugar, Banana fresh, Bread, Cooked egg with shell to the students as per the Government scheme.
The applicant has sought advance ruling in respect of the issue whether supply of goods and services by way of catering to students of Govt. Industrial Training Institute, Kalamassery as per the Govt. Scheme for Rs. 12.40/- per student per day attracts GST.
The coram of Sivaprasad S. and B.S.Thayagarajababu ruled that the activity of the applicant of supply of the above items by way of catering to students of Industrial Training Institute under the scheme sponsored by the State Government is classifiable as a service falling under Service Classification Code – 9963 -996337 – Other contract food services and qualifies for exemption from GST under SI No. 66 of the Notification No.12/2017-Central Tax (Rate) dated June 28, 2017as the institution is providing service by way of education up to higher secondary school or equivalent.
The other issue raised was whether GST registration is required for supply of goods and services of above items.
The AAR held that As per Section 22 of the CGST/SGST Act, 2017; every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees. Section 23 (1) of the CGST Act, 2017 stipulates that any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax shall not be liable to registration. In view of the provisions of Section 23 of the CGST Act, 2017, the applicant is not liable to registration if the applicant is exclusively engaged in the supply of goods or services of providing Boiled milk without sugar, Banana fresh, Bread, Cooked egg with shell to the students as per the Government scheme.
The applicant further asked whether refund of GST is eligible in the case of TDS deducted and paid under Section 51 of the GST Act.
The Authority held that the amount deducted as TDS will be credited to the Electronic Cash Ledger of the applicant on filing of TDS returns by the Deductor as the applicant is registered. Since the supply made by the applicant is exempted from GST, the applicant can claim refund of the excess balance in the Electronic Cash Ledger as per provisions of Section 54 of the CGST Act, 2017.Subscribe Taxscan AdFree to view the Judgment