GST on College Hostel Mess Fees- CBEC issues Clarification

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 tax ability 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)
Email: rachna.irs@gov.in

Corrigendum to 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, 18^th January 2018

To,

The Principal Chief Commissioner / Chief Commissioner / Principal
Commissioner/ Commissioner of Central Tax (All) /
The Principal Director General Director Generals (All)

Madam/Sir,

Subject: Corrigendum to Circular No. 28/02/2018-GST dated 08^th January 2018 issued vide F.No. 354/03/2018 – reg.

In Para 2 of the said circular,

for

“It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor.”

read,

“2.1 If the catering services is one of the services provided by an educational institution to its students, faculty and staff and the said educational institution is covered by the definition given under para 2(y) of notification No. 12/2017-Central Tax (Rate), then the same is exempt. [SI. No. 66(a) of notification No. 12/2017-Central Tax (Rate) refers]

2.2 If the catering services, i.e., supply of food or drink in a mess or canteen, is provided by anyone other than the educational institution, then it is a supply of service at entry 7(i) of notification No. 11/2017-CT (Rate) [as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017] to the concerned educational institution and attracts GST of 5% provided that credit of input tax charged on goods and services used in supplying the service has not been taken, effective f rom 15.11.2017.”

Yours Faithfully,

Rachna

Technical Officer (TRU)

Email: rachna.irs@gov.in

Download Corrigendum to Circular No. 28/02/2018-GST