COLLEGE HOSTEL MESS PROVIDING FOOD TO THEIR STUDENTS - RATE OF TAX UNDER
GST
The Goods and Services Tax Act, 2017 came into force in
India with effect from 1.7.2017.
The
educational institutions have mess facility for providing foods to their
students and staff. Such facility is either run by
the institution / students themselves or is outsourced to a third person.
Supply of food or drink provided by a mess or canteen is taxable at 5% without
Input Tax Credit [Serial No. 7(i) of notification No. 11/2017-CT (Rate) as
amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017 refers]. It is
immaterial whether the service is provided by the educational institution
itself or the institution outsources the activity to an outside contractor.
The Central Government
clarification Circular is given below for ready reference:
Circular No. 28/02/2018-GST
F. No. 354/03/2018
Government of India
Ministry of
Finance
Department of Revenue
Tax research Unit
****
Room No. 156, North Block,
New Delhi, 08th January 2018
To
The Principal
Chief
Commissioners/
Chief Commissioners/ Principal
Commissioners/
Commissioner of Central Tax (All)
/ The Principal Director
Generals/ Director Generals (All)
Madam/Sir,
Subject: Clarifications regarding
GST
on College Hostel Mess Fees
– reg.
Queries have been received seeking clarification regarding the taxability and rate of
GST
on services by a college hostel
mess. The clarification is
as given
below:
2. The educational institutions have mess facility for providing food to their students and staff. Such facility is either run by the institution/ students themselves or is outsourced to a third person. Supply of food or drink provided by
a mess or canteen is taxable at 5%
without Input Tax Credit [Serial No. 7(i) of notification No. 11/2017-CT (Rate) as amended vide
notification No. 46/2017-CT (Rate) dated 14.11.2017
refers]. It is immaterial whether the service is provided by
the educational institution itself or the institution outsources the activity to an outside contractor.
3. Difficulty
if any, in the implementation of this Circular may be brought to the notice of the
Board.
Yours Faithfully,
Rachna Technical Officer (TRU)