Services supplied to State Government under ‘Noon Meal Scheme’ are exempt under GST: AAR

Case Details: Authority for Advance Rulings, Tamilnadu Handloom Weavers Co-operative Society Ltd., In re - [2022] 136 taxmann.com 395 (AAR - TAMILNADU)

Judiciary and Counsel Details

• • T.G. Venkatesh and Smt. K. Latha, Member

Facts of the Case

The applicant was appointed and acting as nodal agency to inspect, procure, store and transport cost free distribution of dhotis, sarees and school uniforms under various welfare schemes for State Government. It filed an application for advance ruling to determine whether services provided to State Government under ‘Noon meal scheme’ run by State Government would be eligible for exemption.

AAR Held

The Authority for Advance Ruling observed that the services provided under gamut of handling by the applicant in respect of free distribution of sarees and dhothis and the School Uniform to the students of class 1 to 8 under ‘Noon Meal Scheme’ are activities in relation to the functions entrusted to Panchayats/Municipality in the article 243G/243W. Since, the applicant would supply these services to the State Government, the exemption at Sl.No.3 of Notification No. 12/2017-C.T. (Rate) dated 28-6-2017 would be available and thus no GST would be levied.