From entrance test to food supplies at schools, things exempt from the GST

The Central Council for Indirect Taxes (CBIC) wrote a series of tweets to clarify which services are exempt from the GST and which services attract the levy. The CBIC’s clarifications are based on discussions at the 43rd GST Council meeting, held on Thursday.

The nodal national agency which is responsible for the administration of customs, GST and excise tax, explained that the goods and services tax is not applicable on services such as the provision of food. to schools and Anganwadi as part of the lunch program.

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

In addition, the Central Council of Indirect Taxes stated that the GST would not be applied to fees paid by students to the Central Council, the National Board of Education or the National Board of Education (NBE) for driving exams, including entrance exams.

In addition, the GST does not apply to entry services related to admission or conducting the exam, such as online test service, publication of results, printing of notification of examination. ‘exam, admission card and questions, etc., when provided to these boards.

However, an 18% GST would be levied on other services provided by these councils, such as the accreditation of an establishment or a professional, specified the CBIC.

He further clarified that the milling of wheat into flour or paddy into rice for distribution under PDS would be exempt from GST if the value of the goods in the composite supply does not exceed 25%. And, if the composite supply exceeds 25%, it will attract 5% of the GST, the CBIC said in a statement on Sunday.

He also said deferred payments to builders for the construction of roads and bridges, called annuities, are taxable.

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