From admission exams to meals deliveries to colleges, every thing that’s exempt from the GST

The Central Board of Indirect Taxes (CBIC) wrote a number of tweets to clarify services that are GST exempt and services that are taxed. The clarifications of the CBIC are based on discussions at the 43rd GST Council meeting on Thursday.

The national Nodal agency, which is responsible for the administration of customs, GST and excise tax, stated that the goods and services tax is not applicable to services such as the delivery of food to schools and anganwadi as part of lunch.

The CBIC on Twitter said that any catering service for an educational establishment is exempt from the GST law.

In addition, the Central Agency for Indirect Taxes said the GST is not levied on fees paid by students to the Central, State Education Authority, or National Education Authority (NBE) for conducting exams, including entrance exams.

Clarification on the applicability of the GST in the provision of various services by central and state bodies (such as the national examination board).

– CBIC (@cbic_india) June 20, 2021

In addition, the GST does not apply to input services in connection with the admission to or the performance of examinations, such as B. Online test service, publication of results, printing of test notifications, admission cards and question papers, etc.

However, for other services provided by such boards, such as the accreditation of an institution or a professional, a GST of 18% would be charged, the CBIC clarified.

It was also made clear that grinding wheat into flour or paddy into rice for distribution under the PDS would be exempt from GST if the value of the goods in the assembled delivery did not exceed 25%. And if the composite offer exceeds 25%, it would attract 5% of the GST, CBIC said in a statement on Sunday.

Clarification on the applicability of the GST when grinding wheat into flour or paddy into rice for distribution by the government / local authority under the PDS.

– CBIC (@cbic_india) June 20, 2021

It also said that deferred payments to builders for the construction of roads and bridges, so-called annuities, are taxable.

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