Clarifications regarding GST on College Hostel Mess Fees.

Circular No.: 28/02/2018-GST
Date of Circular: 8th January 2018
Relevant Sections and Rules:

• Central GST Act, 2017: General charging and exemption provisions
• CGST Rate Notifications:
  • Notification No. 11/2017-Central Tax (Rate)
  • Notification No. 46/2017-Central Tax (Rate) dated 14.11.2017
  • Relevant Entry: Serial No. 7(i) – Catering services

Summary of Circular:

This circular provides clarification on the applicability and rate of GST on mess or canteen services provided in college hostels, whether directly by the institution or through a third party.

1. Taxability of College Hostel Mess Services:
   • Supply of food or drink through a mess or canteen in an educational institution (for students or staff) is taxable at 5% GST, with no Input Tax Credit (ITC).
   • This rate applies irrespective of whether the services are:
     • Provided in-house by the educational institution, or
     • Outsourced to an external caterer or service provider.
2. Rate Reference:
   • The applicable rate falls under Serial No. 7(i) of Notification No. 11/2017-CT (Rate), as amended by Notification No. 46/2017-CT (Rate) dated 14.11.2017.

Source: Circular No.: 28/02/2018-GST