Clarifications regarding GST on College Hostel Mess Fees. - GST - States - 028/02/2018-GST

Circular No. 28/02/2018-GST No. 12-25/2018-19-EXN-GST-(575)-6339-56 Government of Himachal Pradesh, Excise and Taxation Department To 1. The Additional/Jt. Commissioner of State Taxes and Excise, (South Zone, North Zone, Central Zone), Shimla, Palampur, Mandi, H.P. 2. The Joint Commissioner of State Taxes and Excise, Flying Squad, (Central Zone, North Zone, South Zone), Una, Palampur, Parwanoo, H.P. 3. The Dy. Commissioner of State Taxes and Excise, Shimla, Solan, BBN Baddi, Sirmour, Bilaspur, Hamirpur, Mandi. Kullu, Chamba, Kangra, Revenue Distt Nurpur and Una, H.P 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P Dated Shimla-9 13th March, 2019. Madam/Sir, Subject: Clarifications regarding GST on College Hostel Mess Fees. Doubts have been arisen regarding the taxability and rate of GST on services by a college hostel mess. Therefore, the clarification on the issue 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-ST (Rate) as amended vide notification No. 46/2017-ST (Rate) dated 15.11.2017 refers]. 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-State Tax (Rate), then the same is exempt. [Sl. No. 66(a) of notification No. 12/2017-State 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-ST (Rate) [as amended vide notification No. 46/2017-ST (Rate) dated 15.11.2017] 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 from 15.11.2017. 3. This circular shall come into force w.e.f. 08.01.2018. 4. Difficulty if any, in the implementation of this Circular may be brought to the notice of this office immediately. Rajeev Sharma (IAS) Commissioner of State Taxes and Excise, Himachal Pradesh