Queries have been received by the Central Board of Excise and Customs (CBEC) seeking clarification regarding the taxability and rate of GST on services by a college hostel mess.
In this regard it has been clarified that the educational institutions having mess facility for providing food to their students and staff and when such facility is either run by the institution/ students themselves or is outsourced to a third person, 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 November 14, 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.
Read Notification No. 11/2017-CT (Rate) at http://www.cbec.gov.in/resources//htdocs-cbec/gst/Notification11-CGST.pdf and Notification No. 46/2017-CT (Rate) at http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-46-cgst-rate-english-i.pdf
[Circular No. 28/02/2018-GST]