Extending tax relief for over 35 lakh beneficiaries, the Ministry of Home Affairs has decided to grant a 50% GST cut on purchases made from Kendriya Police Kalyan Bhandars (KPKB) or the Central Police Canteens across India. The relief is in line with the waiver that applies to Military Canteen Stores under the GST regime.
According to a letter issued by Home ministry, the waiver of 50% GST will be applicable from 1st April, 2024.
The waiver had run into disputes as the GST Council had not clarified whether the waiver is applicable to police canteens or not. However, the waiver was enjoyed by military canteens for over several years.
Post this, it was recently in December 2023, when Karnataka AAR has held that refund equivalent to 50% of GST amount in terms of Notification No. 6/2017 Central Tax(Rate), is allowed only to military canteens not to Other Canteens running by Central Armed Police Force (CAPF) including CRPF, CISF etc.
Considering this, "Home ministry has now issued an order saying that 50% GST waiver will be given for purchases made at KPKB’s and the waiver will be borne by Home ministry via its budgetary allocation," sources said.
Thus, Come 1st April, KPKBs to charge only 50% GST on purchases by eligible Personnel, including Serving & Retired Personnel, Families Of Central Armed Police Forces (CAPFs), Central Police Organisations and State Police Forces. Personnel From CRPF, CISF, BSF, ITBP, SSB, NSG, To Benefit From GST Concession.
As of today, KPKB’s have 119 Master Bhandars as warehouses and more than 1800 Subsidiary Bhandars as retail outlets.
