2019 (2) TMI 832 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – TMI – Classification of supply – supply of goods or services or both – Mid-Day Meal Programme – Anganwadi meals programme – Charitable Trusts – scope of supply – Preparation and serving of food to children of government schools under Mid-Day meal Program of Government and serving of food under Government sponsored Anganwadi meals – Transfer of goods/capital equipments exclusively used for mid-day meal program and anganwadi meal programme – sale of scrap which was generated during Mid-Day Meal program.
–
Preparation and serving of food to children of government schools under Mid-Day meal Program of Government and serving of food under Government sponsored Anganwadi meals – Held that:- The activities undertaken by the applicant are not covered under the definition of charitable activities – The activities undertaken by the applicant under Mid-Day Meal Programme and Anganwadi meals programme is a supply in accordance with t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
GST/RGST Act, 2017. Thus, the transfer of goods / capital equipments, exclusively used for Mid-Day Meal (MDM) program and Anganwadi meals program sponsored by Government, between different kitchens of applicant which are 'distinct persons' as per GST law is covered under the scope of 'supply' as per section 7 of CGST/RGST Act, 2017.
–
Sale of scrap – Held that:- The sale of scrap is an activity of sale for a consideration as mentioned in definition of 'supply' as per section 7 of CGST/RGST Act, 2017. – ARN No. RAJ/AAR/2018-19/28 Dated:- 9-1-2019 – J.P. MEENA AND HEMANT JAIN MEMBER Present for the applicant: Shri Virendra Parwal (Authorised representative) and Shri K.R. Shreedhar (GM, Finance, TAPE) Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order. The Issue raised by M/s. The Aks
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
a day in 2001, now the applicant is reaching out to more than 17 lakh children studying in more than 14000 schools from its 38 kitchens spread over in 12 states across the country. b. The applicant is a charitable trust registered under section 12AA of the Income Tax Act, 1961. c. Mid-Day Meal Scheme: The applicant strives to eliminate classroom hunger by implementing the Mid-Day Meal Scheme in the government and government aided schools. It also aims at countering malnutrition and supporting the right to education of socio-economically disadvantaged children. Since 2001, the applicant has been concerting all its efforts towards providing fresh and nutrition meals to children on every single school day. d. The applicant is also registered under GST for having rental income in Karnataka, Rajasthan, Uttara Pradesh and Telangana. e. The TAPF was formed by Trust deed dated 16 Oct 2001, amended on 20 Feb 2016 with the following objects: Object of the Trust: Relief of the poor, medical relie
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
deprived economically backward and poor sections of the society and those hailing from rural area and slums in cities by every possible method, by the provision of free food distribution, relief and sustenance. (c) Evolve means and methods to eradicate child labour in sections of society referred to in sub clause (a) & (b) above in general and especially protecting the children of those sections of society against hazardous labour where the Indian children are at present used and exploited. f. All the activities in connection with the achievement of the above objects will be carried on in India without any commercial motive and the benefits thereof will be available to the public at large without any discrimination on grounds of community or cast or creed or sex. g. The Ministry of Human Resources Development, Government, of India has prescribed a Model MOU for partnering with NGOs for the implementation of Mid-Day Meal program to all the state governments. The copy of the letter
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
. Or The First party shall make arrangements for delivery of food grains at the centralized kitchen on the basis of allotted number of children and working days. j. Annual Audit Report – The Second Party will furnish an Annual Audit Report along with audited statement of accounts in terms of all grants received from the State Government, donations received in the name of Mid Day Meal Scheme, both in cash and kind, duly certified by an approved Auditor to the First Party. k. The applicant is operating 38 kitchens across 12 States in the country under the above Guidelines. For each of the kitchen a MOU strictly as per the guidelines of MHRD (as mentioned above) has been entered into with the respective authorities. The Applicant has entered into MOU with the respective State Government to serve Mid-Day Meal to children in government schools. The MOU is made under the framework of Revised Guidelines issued by Ministry of Human Resource Development, Govt, of India, issued from time to time
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ned below:- 1. Government would provide the Food Grains at an agreed quantum per child / meal for the expected average attendance in advance. Applicant shall provide the monthly report of details covering food grains received, utilized and balance in the prescribed format. 2. For other food ingredients and conversion costs, Government would provide the cash conversion cost at agreed rates per child / meal. 3. To enable to reach nutritious, hygienically prepared quality meals to the children, applicant can raise donation, both in cash and kind to meet out deficit 4. All the additional expenses that may be required, on the preparation of the Mid-Day Meal as well as the transportation of the cooked meals to the schools in the project area shall be borne by the applicant 5. Menu will be in accordance as specified by the state Government from time to time. n. The applicant state that the above terms are mentioned commonly in all the MOUs entered into between the applicant with respective St
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
given to the Mid- Day Meal program of the applicant from their income. The original sanction was given in 2003 and was being periodically renewed for every 3 years with the latest extension for a period of 3 years commencing from 1st April 2015 to 31st March 2018, copy of sanction letter is enclosed. q. The applicant also carries out other charitable feeding programs such as Anganwadi feeding, wherein the part of the cost is met by Government Subsidy and the remaining cost is met through donations, private school feeding programs where entire 100% cost is met through donations. These programs are quite small in number and constitute about 10% of the total volume of meals. In none of the above programs, the applicant, charge/ receive any money or consideration from the beneficiaries. r. In course of providing Mid-Day Meal sometimes certain goods like spices, food grains, kitchen equipment and relevant spares (Boiler, Conveyor Belt Spares etc.), office equipment (Laptop, Computer, Statio
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the reason that as per the applicant, it is not covered under the scope of 'Supply' in terms of section 7 of the CGST Act/RGST Act. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. B. Further, the definition of business under Section 2(17) of CGST Act includes- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ipedia defines it as exchange of goods and services, especially on a large scale As per the documents submitted by the applicant we observe that the applicant is reimbursed as per the rate fixed by the Government of India or by the State Government for the transportation charges for lifting food grains from Food Corporation of India godown on basis of the release order. It is further observed that the applicant is also paid / reimbursed of the cooking cost of the meals as per the instructions/ norms of GOI / State Govt. While going through the MOU dated 24-10-2016 for Mid- Day Meal Programme between the District Education Officer (DEO), Elementary Education, Jodhpur and Unit President, Akshaya Patra Foundation Jaipur, it is observed that the applicant is receiving conversion charges from the DEO, Jodhpur for cooking of the meal @ ₹ 4.13 (Class I to V) and ₹ 6.18 (VI to VIII) per child per day meal served. In view of the above observations, the activity of preparation and se
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of (I) terminally ill persons or persons with severe physical or mental disability; (II) persons afflicted with HIV or AIDS; (III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or (B) public awareness of preventive health, family planning or prevention of HIV infection; (ii) advancement of religion, spirituality or yoga; (iii) advancement of educational programmes or skill development relating to,- (A) abandoned, orphaned or homeless children; (B) physically or mentally abused and traumatized persons; (C) prisoners; or (D) persons over the age of 65 years residing in a rural area; (iv) preservation of environment including watershed, forests and wildlife; In view of the above, we observe that the activities undertaken by the applicant are not covered under the definition of charitable activities. E. The activities undertaken by the applicant under Mid-Day Meal Programme and Anganwadi meals programme is a supply in accordance with the Section 7
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rogram and Anganwadi meals program sponsored by Government, between different kitchens of applicant which are 'distinct persons' as per GST law is covered under the scope of 'supply' as per section 7 of CGST/RGST Act, 2017. III. The scrap items (as mentioned in statement of facts by the applicant) which generates during course of the activity of Mid-Day Meal in form of empty oil & other tins, pipes & iron, empty bags, plastic items, cartoons, Flex & Boxes, spare parts of machine / equipment, vehicle & its parts like tyres etc. are sold from time to time is for a consideration. The sale proceeds of these items are recorded under the head miscellaneous income in the books of records. The sale of scrap is an activity of sale for a consideration as mentioned in definition of 'supply' as per section 7 of CGST/RGST Act, 2017. 6. In view of the foregoing, we rule as under:- RULING A. Preparation and serving of food to children of government schools unde
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =