Order Date – 23 January 2023

Facts –

• The applicant, M/s. Sri Annapumeshwari Enterprises, are carrying on the business of hotel and they are supplying ready to eat breakfast, lunch to the KLE Independent PU College, Bengaluru. They are not collecting any charges from the students. They are billing to college and college is paying the amount.

Issue – 

• Whether providing catering services to Educational Institutions from 1st standard to 2nd PUC is taxable or not according to Notification No. 12/2017-Central Tax Rate -under Heading 9992?

Order –

• The AAR observed that the entry No.66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended exempt services provided by way of catering to an educational institution, which is providing services by way of pre-school education and education up to higher secondary school. 
• It is seen the applicant is billing to the KLE Independent PU College and the consideration is payable by the said college. Hence the recipient of the service in question is the KLE Independent PU College. Since the recipient of service is an institution providing education up to higher secondary school, it is covered under the definition of "educational institution" for the purposes of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
• Hence it was held that providing ready to eat food by way of catering to a Pre-University College, the services provided by the applicant under question is also covered under entry No.66 of Notification No. 12/2017-Central Tax (Rate) dated: 28.06.2017 as amended further and hence exempted from GST.