This circular provides clarification on the applicability of GST on supply of food, including mid-day meals, in schools and Anganwadis.

It clarifies that Entry No. 66(b)(ii) of Notification No. 12/2017–Central Tax (Rate) exempts catering services provided to educational institutions, including services under the Mid-Day Meal Scheme sponsored by the Central Government, State Government or Union Territory. The scope of this exemption is wide and covers serving of any food to schools, including pre-schools.

The circular further clarifies that Anganwadis provide pre-school education and are therefore covered within the definition of “educational institution” for the purpose of this exemption. Accordingly, services by way of serving of food to Anganwadis are also exempt from GST.

It is also clarified that the exemption applies irrespective of the source of funding. Whether the food supply is funded through government grants or through corporate donations does not affect the availability of the GST exemption.

This clarification ensures uniform tax treatment and removes ambiguity regarding GST on food supplied under welfare schemes in schools and Anganwadis.