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TMI Blog2019 (2) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... ered person, GSTIN is 08AAATT6468P1ZL, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the application is admitted to pronounce advance ruling. 1. SUBMISSION OF THE APPLICANT: a. The applicant is a not for profit organisation. It's headquarter is at Bengaluru and having establishment/ setup in 12 States across India. From a modest beginning of serving 1500 meals 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... important provisions of the model MOU which has a bearing on the subject is mentioned below. (In the below paragraphs the word First party refers to the Government Authorities and Second Party refers to the NGOs like Applicant). h. Cooking Cost - The First Party will reimburse the cooking cost to the Second Party @ Rs..... (per meal cooking cost) per child per school day for primary school children and Rs (per meal cooking cost) per child per school day for upper primary schools children (or as per the instructions / norms of GOI/State Government). i. Supply of Food grains The Second Party shall lift the food grains from Food Corporation of India godown on the basis of Release Order issued by the First Party based on allotted number of children and working days. Subsequently transportation charges will also be reimbursed to the Second Party as per the rates fixed by the Government of India or by the State Government. 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 state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id-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 State Government. The copies of MOUs entered with Government of Gujarat for the implementing MDM program in Ahmedabad and with Government of Andhra Pradesh for implementing MDM program in Kuppam town provided with application as sample for reference. o. The applicant raises funds by way of donation from Corporates, Trusts & Foundations and general public for meeting the expenditure incurred on Mid-Day meal program apart from free grains and food conversion cost received from government. The certified extract of official website of the applicant requesting for fund support from Donors is also enclosed, which shows the total cost, government subsidy and the deficit amount to be supported from donations. p. The Income tax department, Ministry of Finance, Government of India has recognized the program of Mid-Day Meal as a "Program of Nati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate) dated 28.06.2017, which is reproduced as below: (r) "charitable activities" means activities relating to- (i) public health by way of,- (A) care or counseling 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 of CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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