College Supplying Food through Canteen run by Educational Trust Must Register under KVAT Act: Kerala HC

The Kerala High Court has ruled that a college supplying food through a canteen run by an educational trust must register under the Kerala Value Added Tax (KVAT) Act. The court held that the supply of food by the canteen, even if operated by a trust associated with the educational institution, constitutes a business activity and is therefore subject to VAT. This decision clarifies the taxability of canteen services provided by educational institutions, stating that such supplies are not inherently exempt from VAT unless specifically provided under the Act. The ruling implies that colleges and educational trusts operating canteens need to obtain VAT registration and comply with the relevant tax regulations on the sale of food and beverages.