College Supplying Food Through Canteen Managed By Educational Trust Is Liable For Registration Under KVAT Act: Kerala High Court

The Kerala High Court ruled that a college supplying food through a canteen, even if managed by an educational trust, is liable for registration under the Kerala Value Added Tax (KVAT) Act. The court reasoned that the activity of supplying food through a canteen is a business activity distinct from the educational activities of the trust. Therefore, the exemption granted to educational institutions may not extend to the commercial operation of a canteen within the college premises. This decision highlights the principle that even entities with charitable or educational objectives can be subject to tax laws for their commercial ventures, emphasizing the need to consider the nature of the specific activity rather than the overall nature of the organization.