5% GST on Any Supply Offered by Educational Institute/ College Canteen/ Hostel/ Mess

CBEC has recently notified that any supply made by an educational institute or college canteen or hostel or a mess towards the students/ staff will attract a tax of 5% on the value of transaction. The tax is being charged under GST Act.

For the purpose of determining the term ‘service’, one should consider supply of food and drink only. On the other hand, if the educational institute or college canteen or hostel or mess is supplying foods and drink to students or staffs through a third party vendor/ outsourced contractor, then the same shall also be charges with a @ 5% tax on the transaction value.

Reference:

http://cbec.gov.in/resources//htdocs-cbec/gst/circularno-28-gst.pdf

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