Key Highlights of Circular No. 75/49/2018

02March

Key Highlights of Circular No. 75/49/2018 - GST

<h2>1. What is Seva Bhoj Yojna?</h2><ul><li>A Central Sector Scheme initiated by the Ministry of Culture.</li><li>Provides reimbursement of Central GST (CGST) and Central Government’s share of IGST.</li><li>Applicable for charitable and religious institutions distributing free food (prasad, langar, bhandara, etc.) to the public.</li><li>Operational from August 1, 2018.</li></ul><hr><h2>2. Eligible Institutions for Reimbursement</h2>Institutions must meet the following criteria: ✅ Must be registered under the Income Tax Act (Section 10(23BBA) or Section 12AA) OR under Section 8 of the Companies Act. ✅ Must be engaged in charitable/religious activities and providing free food to at least 5000 people per month. ✅ Must have been in existence for at least 3 years before applying. ✅ Must not be blacklisted under FCRA or any other law. ✅ Must not be receiving financial aid from the Central/State government for food distribution.<hr><h2>3. Items Covered Under Seva Bhoj Yojna</h2>The following raw food items are eligible for GST reimbursement: ✔ Ghee ✔ Edible Oil ✔ Sugar, Burra, Jaggery ✔ Rice ✔ Atta, Maida, Rava, Flour ✔ Pulses<hr><h2>4. Process for Enrolling Under Seva Bhoj Yojna</h2><h3>Step 1: Registration on NITI Aayog’s DARPAN Portal</h3><ul><li>Obtain a Unique ID from DARPAN Portal.</li><li>Register on the Ministry of Culture’s CSMS Portal (<a href="https://indiaculture.nic.in/scheme-financial-assistance-under-seva-bhoj-yojna-new" rel="noopener">www.indiaculture.nic.in</a>).</li><li>Upload required documents (trust deed, PAN, past financials, etc.).</li></ul><h3>Step 2: Obtaining a Unique Identification Number (SBY-UIN)</h3><ul><li>Apply using FORM SBY-01 to the nodal GST officer of the respective state/UT.</li><li>The nodal officer will issue an SBY-UIN within 7 days via FORM SBY-02.</li><li>Separate SBY-UIN is required for each state/UT where the institution operates.</li></ul><hr><h2>5. Process for GST Reimbursement Claims</h2>✅ Institutions must submit quarterly reimbursement claims using FORM SBY-03. ✅ The application must be filed within 6 months from the end of the quarter. ✅ The following documents must be attached:<ul><li>Invoices of food purchases (with SBY-UIN and Ministry of Culture registration number).</li><li>Chartered Accountant Certificate verifying purchases and GST paid.</li><li>Self-declaration that the food items were used for free distribution.</li></ul>✅ The nodal officer will verify claims within 15 days and issue an acknowledgment in FORM SBY-04. ✅ After scrutiny, an order for reimbursement is issued via FORM SBY-05, and payment is processed using FORM SBY-06.<hr><h2>6. Key Compliance and Reporting Requirements</h2><ul><li>Institutions must maintain separate accounts for purchases under this scheme.</li><li>No mixing of purchases for commercial sales (i.e., langar food vs. food sold in temple stalls).</li><li>GST officers will conduct random inspections of 5% of beneficiaries annually.</li><li>Monthly and annual performance reports must be submitted.</li></ul><hr><h2>7. Penalties for Misuse of the Scheme</h2>? Institutions misusing funds will be blacklisted and required to refund the entire amount with interest and penalties. ? Criminal action may be taken against institutions submitting fake documents. ? All assets created using government grants will be seized in case of fraud.<a href="https://cms.plasament.com/storage/shubham-pathak/circular-no-75.pdf">circular-no-75</a>

Key Highlights of Circular No. 75/49/2018 - GST

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