TDS is not applicable for exempted service provided under GST

THE AUTHORITY OF ADVANCE RULING
IN KARNATAKA

The Question and Ruling as follows :

1. We are providing catering services to educational institutions sponsored by State/ Central / Union territory which is exempted services under Sl. No. 66 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. As per Circular 65/39/2018, TDS under GST is applicable only for taxable supply contracts and as we are the exempted service provider. TDS is not applicable for our services (HSN Code 9992).

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 28.06.2017 and entry no.66 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.207 and 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 sectin 51 of KGST Act.