GST

GST on College Hostel Mess canteen Fees-Clarifications. Supply of food or drinks at canteen taxable at 5% without ITC

GST on College Hostel Mess canteen Fees-Clarifications. Supply of food or drinks taxable at 5% without ITC whether canteen is outsourced or not

CBEC has clarified the queries seeking clarification regarding the taxability and rate of GST on services by a college hostel mess.

According to the  Circular No. 28/02/2018-GST issued in this regard, normally 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.

GST on College Hostel Mess Fees

It has been clarified that the 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.

Download the Circular Click Here >>

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