The Notification No. 11/2017 CT-(R) dated 28.06.2017 states that the supply of foods and beverages made by institute such as college, school and hospital etc. shall be liable to GST at the rate of 5%. While Notification No. 12/2017 CT-(R) dated 28.06.2017 provides an exemption for the service provided by the educational institute to its student, faculty and staff.
It is implicit that the entry specifically covered under Notification 12/2017- CT(R) is exempt from GST although GST rate for the same has been prescribed vide different Notification. Supply of all service by educational institute to its student, faculty and staff shall be exempt from GST.
In order to bring clarity the CBIC vide Notification No. 27/2018 CT (R) dated 31.12.2018 has deleted the word school and college from the said notification. However in case of such foods and beverages supplied made by any other person under the contractual arrangement with such institute shall not be eligible for the exemption under the said notification and shall be liable to GST at the rate of 5% on supply made to the students, faculty and staff of the institute.
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