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The taxability and rate of goods and services tax on services by a college hostel mess apply to educational institutions. The educational institutions operate mess facilities for students and staff directly or through third persons. The supply of food or drink by a mess or canteen is taxable at 5 percent without input tax credit under serial number 7(i) of notification number 11/2017-central tax (rate) as amended by notification number 46/2017-central tax (rate). The tax rate applies equally whether the institution runs the mess itself or outsources the activity to an outside contractor.
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Ask about this circular
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:
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.
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
