GST Exemption to Central Police Canteen (CPCs)
There is no such proposal for making any statutory rules for Central Police Canteen (CPC). However, it is submitted that CPC is a non-profit, welfare-oriented venture for providing good quality daily need products at cheaper prices to serving and retired members of Central Armed Police Forces (CAPFs) and Central Police Organizations (CPOs). CPC levies Development charges @ 3% on invoice value of the product excluding GST applicable. The development charges so accrued of CPC canteens and its system at all the three tiers viz. Central Office, 119 Nos Master Canteen and 1780 Nos Subsidiary Canteens of CPC (as on date).
The GST Council in its 15th Meeting held on 3.6.2017 examined this and did not recommended concession to CPCs. This issue was again placed before the GST Council in its 25th& 28th meetings. The GST Council after observation that in pre-GST era concession to CPC was given by only certain States, did not recommended any concession to CPCs.
Total profit amount for Rs. 1,065,907,138 accrued at the level of Master canteen upto 30.06.2018 as Development charges from 29 States/UTs.
The above information given by the Minister of State for Finance Minister Shri Shiv Pratap Shukla in the Parliament on 21.12.2018