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Schools Not Entitled To Pay GST On Canteen And Transportation Services: AAR
Mariya Paliwala
1 Jun 2022 3:00 PM GMT
The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that the schools are not liable to pay GST on the canteen and the transportation services that are furnished by schools. The applicant, Rahul Ramchandran, has a new business under the trade name "Nashik Cambridge Pre-school". The applicant intends to supply certain services...
The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that the schools are not liable to pay GST on the canteen and the transportation services that are furnished by schools.
The applicant, Rahul Ramchandran, has a new business under the trade name "Nashik Cambridge Pre-school". The applicant intends to supply certain services to his students, faculty, and staff. The applicant wants to provide pre-school education services to its students against a fee. Books, stationery, drawing materials, sports goods, food items, milk, beverages, etc. to his students without any consideration, as the cost will be covered in the fee charged and with consideration in some cases. Transportation service to its pre-school students without any consideration and with consideration in some cases. Transportation service to his faculty and staff for some consideration. Canteen service to his faculty and staff for some consideration.
The applicant has sought an advance ruling on the issue of whether Nashik Cambridge Pre-school is entitled to a nil rate of tax as per Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017, on the supply of pre-school education services to its students against fee.
The AAR observed that the applicant provides services by way of pre-school education. The applicant, i.e., Nashik Cambridge Pre-School, can be considered as an "Educational Institution". Since, Nashik Cambridge Pre-School can be considered as an "Educational Institution", services provided by them to its students, faculty, and staff attract a NIL rate of GST.
The AAR ruled, "Nashik Cambridge Pre-school is also entitled to a nil rate of tax as per Serial No. 66 of the Notification No. 12/2017-CT (Rate) dated 28/06/2017, on the supply of pre-school education service to its students against fee; on the supply of transportation service to its pre-school students without any consideration; on the supply of transportation service to its pre-school students for some consideration ; on the supply of transportation service to its faculty and staff for some consideration; and on the supply of canteen service to its faculty and staff for some consideration."
Applicant's Name: Rahul Ramchandran
Citation: GST-ARA-43/2020-21/B-64
Date: 23/05/2022
