Clarification regarding GST on College Canteen & Hostel Mess

Lately there has been a lot of queries to the department of revenue seeking clarification regarding taxability and rate of GST on services of a college canteen or a hostel mess fees, after the issue of Notification No. 46/2017-CT Rate dated 14.11.2017.

With reference to the same, the ministry of finance has issue a clarificatory circular no. 28/02/2018-GST Vide F. No. 354/03/2018, clarifying that the educational institutions having mess facility for providing food to their students and staff, wherein the service maybe directly rendered by the institution or being outsourced to a third person, such supply of food or drinks provided by a mess or canteen is taxable at the rate 5% without input tax credit. It is immaterial whether the service is provided by the educational institution itself or it has been outsourced to an outside contractor.

The copy of the circular maybe downloaded from the below mentioned link.

Download

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