Namaste!
Please find herewith the details of Circular along with copy issued by the Government.
1. Clarification regarding applicability of GST on supply of food in Anganwadis and Schools -
It has been 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 said entry 66 (b)(ii)]. Educational institutions as defined in the notification include aganwadi. Hence, serving of food to anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates
Circular No. 149/05/2021-GST dt. June 17, 2021
2. Clarification regarding applicability of GST on the activity of construction of road where considerations are received in deferred payment (annuity)-
It has been 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
Circular No.150/06/2021-GST dt. June 17, 2021
3. Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination)
It has been clarified that (i) GST is exempt on services provided by Central or State Boards (including the boards such as NBE) by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of Notif. No. 12/2017-CT(R)]. Therefore, GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations (ii) GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc, when provided to such Boards [under S. No. 66 (b) (iv) of notif No. 12/2017-CT(R)]. (iii) GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test ) so as to authorise them to provide their respective services.
Circular No. 151/07/2021-GST dt. June 17, 2021
4. 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.
It has been clarified that works contract service provided by way of construction such as of rope way shall fall under entry at sl. No. 3(xii) of notification 11/2017-(CTR) and attract GST at the rate of 18%.
Circular No. 152/08/2021-GST dt. June 17, 2021
5. GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS.
It has been clarified that (i) Entry No. 3A would apply to composite supply of milling of wheat and fortification thereof by miller, or of paddy into rice, Circular No. 153/09/2021-GST provided that value of goods supplied in such composite supply (goods used for fortification, packing material etc) does not exceed 25% of the value of composite supply. 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. (ii) A person registered only for the purpose of deduction of tax under section 51 of the CGST Act is also a registered person for the purposes of the said entry No. 26, and thus said supply to such person is also entitled for 5% rate.
Circular No. 153/09/2021-GST dt. June 17, 2021
6. GST on service supplied by State Govt. to their undertakings or PSUs by way of guaranteeing loans taken by them -
It has been clarified that guaranteeing of loans by Central or State Government for their undertaking or PSU is specifically exempt under Entry No. 34A of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 “Services supplied by Central Government, State Government, Union territory to their undertakings or Public Sector Undertakings (PSUs) by way of guaranteeing the loans taken by such undertakings or PSUs from the banking companies and financial institutions.”.
Circular No. 154/10/2021-GST dt. June 17, 2021
7. Clarification regarding GST rate on laterals/parts of Sprinklers or Drip Irrigation System -
It has been clarified that laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.
Circular No. 155/11/2021-GST dt. June 17, 2021
Thanks & Regards
TEAM GST DOST
