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The supply of services made by the applicant in the form of supply of food and drinks to the educational institutions is exempted from CGST and SGST. The amount received for such exempted service is not liable for TDS.

TDS The applicant has sought advance ruling in respect of the following questions:

We are providing catering services to educational institutions sponsored by State/ Central / Union territory which is exempted services under Sl. No. 66 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. As per Circular 65/39/2018, TDS under GST is applicable only for taxable supply contracts and as we are the exempted service provider. TDS is not applicable for our services (HSN Code 9992).

The nature of the contract is verified and found that the successful bidders have to prepare the food in the respective schools only and there is no provision of providing food cooked outside the premises or from one school to another. Hence the applicant has to prepare the food in the school premises and supply it to the students of the school for a monthly consideration.

Held that— The supply of services made by the applicant in the form of supply of food and drinks to the educational institutions is covered under entry no. 66 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 are hence exempted from CGST and SGST.

The amount received for such exempted service is not liable for tax deduction at source under Section 51 of the CGST Act.—Mahalakshmi Mahila Sangha, In Re… [2020] 24 TAXLOK.COM 023 (AAR-Karnataka)