GST NEWS BULLETIN

GST Exempt on Supply of Food (Including Mid- Day Meals) To Anganwadis and Schools

The GST Council in its 43rd Meeting held on 28th May 2021 had recommended that services supplied to an educational institution including to an anganwadi (which provides pre-school education) by way of serving food including mid-day meals under any mid-day meal scheme, sponsored by Government are to be exempt from levy of GST.

Read more at

GST Applicability on Construction of Road Where Consideration Received in Deferred Payment (Annuity)

CBIC had received various representations from the industry requesting a clarification regarding the applicability of GST on annuities paid for construction of road where certain portion of consideration is received upfront while remaining payment is made through deferred payment (annuity) spread over years.

Read more at

Taxability Of Services Provided by Central and State Board (Such as National Board of Examination)

CBIC has issued Circular No. 151/07/2021-GST dated 17th June 2021, to clarify the taxability of services provided by central or state board. CBIC has clarified the following :
(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 NN - 12/2017-CT(R)

Read more at

18% GST Applicable on Construction Services Provided to A Government Entity, In Relation to Construction Such as of A Ropeway on Turnkey Basis

CBIC vide Circular No. 152/08/2021-GST dated 17th June 2021, has 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%.

Read more at

5% GST Applicable on Milling of Wheat into Flour or Paddy into Rice for Distribution by State Governments Under PDS.

CBIC vide Circular No. 153/09/2021-GST dated 17th June 2021 has clarified the following in respect of Milling of Wheat/Paddy :
(i) Entry No. 3A would apply to composite supply of milling of wheat and fortification thereof by miller, or of paddy into rice, only if the 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.

Read more at

GST Exempt on Service Supplied by State Govt. To Their Undertakings or PSUs by way of Guaranteeing Loans Taken by Them

CBIC vide Circular No. 154/10/2021-GST dated 17th June 2021 has 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.

Read more at

HSN Code 8424 Applicable on Laterals/Parts of Sprinklers or Drip Irrigation System

CBIC had received various representations from the industry requesting a clarification regarding GST rate on parts of Sprinklers or Drip Irrigation System when they are supplied separately (i.e. not along with entire sprinklers or drip irrigation system).

Read more at