Catering services to educational institutions from 1st standard to 2nd PUC exempt from GST under Notification 12/2017 entry 66

AAR Karnataka ruled that catering services provided to educational institutions from 1st standard to 2nd PUC are exempt from GST under Notification 12/2017-Central Tax Rate, entry 66. The applicant's ready-to-eat food services to a Pre University College qualify for exemption since the recipient institution provides education up to higher secondary level, meeting the definition of educational institution under the notification. The services are covered under heading 9992 and exempt from GST.

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Issues:
1. Admissibility of the application under Section 97(2)(e) of the CGST Act, 2017.
2. Taxability of catering services provided to Educational Institutions under Notification No. 12/2017-Central Tax Rate.

Admissibility of the Application:
The issue of determining the liability to pay tax on goods or services falls under Section 97(2)(e) of the CGST Act, 2017, making the application admissible. The applicant, a partnership firm engaged in the hotel and catering business, sought an advance ruling regarding the taxability of catering services provided to Educational Institutions.

Taxability of Catering Services:
The applicant supplied ready-to-eat breakfast and lunch to an Educational Institution, KLE Independent PU College, without charging students directly. The applicant questioned the tax liability on catering services provided to Educational Institutions from 1st standard to 2nd PUC under Notification No. 12/2017-Central Tax Rate. The ruling analyzed the relevant entry No. 66 of the notification, which exempts services like catering to Educational Institutions offering pre-school education up to higher secondary school from GST.

Recipient and Educational Institution Definitions:
The ruling clarified that the recipient of the service, in this case, the KLE Independent PU College, is liable to pay for the catering services provided. The definition of an "educational institution" under the notification includes institutions providing education up to higher secondary school, encompassing the recipient institution. As the applicant's services fall under catering for a Pre University College, they are covered under the exempt category specified in the notification.

Conclusion:
The ruling concluded that providing catering services to Educational Institutions from 1st standard to 2nd PUC is exempted from GST as per entry No. 66 of Notification No. 12/2017-Central Tax Rate. The applicant's services to the Pre University College fell within the exempt category, aligning with the provisions outlined in the notification.

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