Q. 124 A partnership firm providing educational services up to higher secondary is exempt from gst . Now they want to provide food to students and staff of their school and surrounding schools on payment basis. They receive food from a canteen situated in their premises for which the canteen will rise a gst invoice in the name of partnership organization for supply of food. Now the partnership organization keeping a margin raise bill on students and staff. whether gst provisions are applicable to the partnership organisation ?

Ans. In respect of exemption notification no. 12/2017- CT (R ) catering including any mid-day meals scheme sponsored by the central government, state government or union territory are exempt, else GST would be levied.

Q. 123 Is refund can be rejected on technical grounds ?

Ans. Refund is a substantial right and it cannot be denied on technical grounds.

Q.122 Please clarify and whether RCM is applicable on mandatory / statutory required services charges paid to govt. like factory fees, DGFT fees, pollution department fee etc. Please clarify RCM on bank guarantee given by the director ?

Ans. This is a very subjective matter of litigation As per notification no. 13/2017- CT (R ), services supplied by the central government, state government, union territory or local authority to a business entity would be covered under reverse charge mechanism except a few services. However, services provided by the government under article 243 W and 243 G are exempt. Therefore, it is required to check each service fee paid by your w.r.t criteria mentioned above. In general, if the bank guarantee given by the director is not in the course or terms of employment then tax under GST has to be discharged through RCM. It is also advised to take a detailed opinion to have better clarity.