Page 175 - GSTL_18th June 2020_Vol 37_Part 3

2020 ] IN RE : HOMBALE CONSTRUCTIONS & ESTATES PVT. LTD. 389
provision of providing food cooked outside the premises or from one school to
another. Hence the applicant has to prepare the food in the school premises and
supply it to the students of the school for a monthly consideration. Further, it is
seen that the students to whom the service is provided are from the Primary
School category. Hence the service is a catering service provided to an educa-
tional institution which is a primary school and hence is covered under the Entry
No. 66 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 as
amended from time to time and is exempted from the payment of GST.
9. Section 51(1) of CGST Act, 2017 states as under
“Section 51(1) : Notwithstanding anything to the contrary contained in this
Act, the Government may . . . . . . .
. . . . . . .
. . to deduct tax at the rate of one per cent. from the payment made or cred-
ited to the supplier (hereinafter in this section referred to as “the deductee”)
of taxable goods or services or both, where the total value of such supply, un-
der a contract, exceeds two lakh and fifty thousand rupees :
. . . “
From the above, it is clear that the provision of tax deduction at source is appli-
cable on the payment made to a supplier of taxable services and since the appli-
cant is supplying exempt services, the said provisions are not applicable to the
payments made to him by the educational institutions.
10. In view of the foregoing, we rule as follows
RULING
(1) The supply of services made by the applicant in the form of supply
of food and drinks to the educational institutions is covered under
Entry No. 66 of Notification No. 12/2017-Central Tax (Rate), dated
28-6-2017 and Entry No. 66 of Notification (12/2017) No. FD 48 CSL
2017, dated 29-6-2017 and are hence exempted from CGST and
SGST.
(2) The amount received for such exempted service as covered under
para 1 above is not liable for tax deduction at source under Section
51 of the CGST Act and Section 51 of KGST Act.

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2020 (37) G.S.T.L. 389 (A.A.R. - GST - Kar.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. M.P. Ravi Prasad, Member (State Tax) and Shri Mashhood Ur Rehman
Farooqui, Member (Central Tax)
IN RE : HOMBALE CONSTRUCTIONS & ESTATES PVT. LTD.
Advance Ruling No. KAR ADRG 34/2020, dated 20-5-2020
Works contract - Construction of Hostel building at National Centre
for Biological Sciences (NCBS) Campus in Bangalore by applicant - NCBS be-
GST LAW TIMES  18th June 2020  175