Clarification on GST rate applicable on supply of food and beverage services by educational institution

Jan 02, 2019 | by Avantis RegTech Legal Research Team


The Department of Revenue on January 01, 2019 has issued Clarification on GST rate applicable on supply of food and beverage services by educational institution.

Representations have been received seeking clarification as to the rate of GST applicable on supply of food and beverages services by educational institution to its students. It has been stated that the words “school, college” appearing in Explanation 1 to Entry 7 (i) of Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 give rise to doubt whether supply of food and drinks by an educational institution to its students is eligible for exemption under Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 Sl. No 66, which exempts services provided by an educational institution to its students, faculty and staff.

The matter has been examined by the Department of Revenue and in order to remove any doubts on the issue, Explanation 1 to Entry 7(i) of Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 has been amended vide Notification No. 27/2018-Central Tax (Rate) dated December 31, 2018 to omit from it the words “school, college”. Further, heading 9963 has been added in Column (2) against entry at Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017, vide Notification No. 28/2018-Central Tax (Rate) dated December 31, 2018.

[Circular No. 85/04/2019- GST]

 

URL: http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-85.pdf;jsessionid=D9F2A0CCBC9F488DBF2D9C2FA97BD4C1


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