Advance Ruling on GST Applicability for M/s RAIBAG TALUK MSPC Supplying Food Products to Anganwadi Centers

Advance Ruling on GST Applicability for M/s RAIBAG TALUK MSPC Supplying Food Products to Anganwadi Centers

ParticularsDetails
Name of applicantM/s. M/S. RAIBAG TALUKA MSPC
Name of RespondentAuthority For Advance Rulings, Karnataka
Order No.KAR ADRG 35/2024
Date of Order22nd July 2024

M/s RAIBAG TALUK MSPC, a society registered under the Karnataka Societies Registration Act, 1960, has applied for an advance ruling under the CGST Act, 2017 and KGST Act, 2017. The society is engaged in supplying supplementary food products to Anganwadi centers through the Child Development Project Office (CDPO). They seek clarification on the applicability of various GST notifications and circulars to their operations and products.

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Key Issues Raised

  • Exemption under Notification No. 12/2017-Central Tax (Rate):

Question: Whether the applicant is eligible for GST exemption under S.No. 66 clause (b)(ii) of this notification.

  • Applicability of Circular No. 149/05/2021-GST:

Question: Whether the exemption mentioned in the circular, which pertains to services provided to educational institutions (like Anganwadis) by way of catering, applies to them.

  • Clarification No: KSA/GST.CR-05/2019-20:

Question: Whether this specific state-issued clarification applies to their operations.

  • Taxability of Product ‘Pushti’:

Question: Whether ‘Pushti’, their primary product, is considered “pre-packaged and labeled” and hence taxable under specific GST notifications.

Admissibility

The application is deemed admissible as it seeks determination of tax liability and the applicability of notifications, which are within the purview of advance ruling as per Section 97 of the CGST Act, 2017.

Applicant’s Submissions

‘Pushti’ is a powdered mixture of sugar, groundnut, fried gram, green gram, soya, and rice.Supplied exclusively to CDPO, not available in the open market.Packed and labeled as “Free supply and not for sale”.As per an earlier ruling, ‘Pushti’ falls under HSN code 1106.The society supplies various goods to CDPO for distribution to Anganwadi centers, including ground nuts, green gram, oil, salt, etc.

Authority’s Analysis and Findings

  • Exemption under Notification No. 12/2017-Central Tax (Rate):

Finding: The notification pertains to services provided to educational institutions. Since the applicant supplies goods, not services, this notification is not applicable.

  • Circular No. 149/05/2021-GST:

Finding: This circular clarifies the applicability of GST exemption on catering services to educational institutions. Since the applicant supplies goods, this circular is not applicable.

  • Clarification No: KSA/GST.CR-05/2019-20:

Finding: Similar to the circular, this state-issued clarification pertains to services and is not applicable to the applicant’s supply of goods.

  • Taxability of ‘Pushti’:

Pre-packaged and Labeled: ‘Pushti’ does not fall under the pre-packaged and labeled category as per the definition in the Legal Metrology Act and hence does not fit into the specified GST entries for taxed products.

Ruling

  • Exemption under S.No.66 clause (b)(ii) of notification No. 12/2017-Central Tax (Rate):

Not available to the applicant.

  • Applicability of Circular No. 149/05/2021-GST:

Not applicable to the applicant.

  • Clarification No: KSA/GST.CR-05/2019-20:

Not applicable to the applicant.

  • Taxability of ‘Pushti’:

‘Pushti’ is not taxed as per entry No. 78 of Notification No. 02/2017-Central Tax (Rate).

Conclusion

The applicant’s products and operations are not eligible for the exemptions or specific tax treatments mentioned in the cited notifications and circulars, as their activities are classified as supply of goods rather than services. This ruling provides clarity on the taxability of their primary product, ‘Pushti’.

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