There would be no GST supply of food to pre-schools, Anganwadi, mid-day meals
The Central Consumption Tax and Customs Commission (CBIC) stated that food provided to schools under the mid-day meal scheme, preschool and Anganwadi meal plan is exempt from goods and services tax.
CBIC issued a series of clarification statements on certain decisions of the Goods and Services Tax Committee at its 43rd meeting on May 28, stating that it has received a statement on the applicability of the Goods and Services Tax, concerning whether serving food to school under mid-day meal scheme will be waived if these supplies are funded by government grants and/or corporate contributions. 
According to the Goods and Services Tax (GST), any catering services provided to educational institutions, including mid-day meals, are exempt from this tax.
CBIC said that this covers all food provision in schools, including preschool. Also, since Anganwadi specifically offers non-formal education before preschool, Anganwadi is covered by the definition of an educational institution (as preschool).
Abhishek Jain, the EY tax partner, said the government’s clarification of broad ambitions for a GST waiver for catering services provided to educational institutions was highly appreciated by stakeholders. “This clarification will help reduce the cost on account of GST, for the educational institutions involved in providing such meals thereby saving on the corpus of such institutes,” said Jain.
In a separate clarification on GST for the provision of various services by the State and Central Councils (such as the National Board of Examination), CBIC states that GST is exempt for services provided by central or state boards (including boards such as the NBE) as testing behaviour for students. It includes conducting an entrance test for admission to an educational institution.
In addition, GST is also exempt from tax for input services related to the entrance exam or exam, such as online testing services, the announcement of results, the printing of copies. examination, ballots, registration, questionnaire when they are provided, such Boards. However, 18% of the GST will go to other services provided by these boards, such as certification of an institution or a professional, the CBIC said.
