#CBEC Clarifications: #GST on Hostel Mess Fees

Circular No. 27/01/2018-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 tax ability and rate of GST on services by a college hostel mess. The clarification 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-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.

3. 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

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