Clarifications Regarding GST on College Hostel Mess Fees
<p><span>The Ministry of Finance, Government of India, issued Circular No. 28/02/2018-GST on January 8, 2018, providing critical clarifications on the taxability and rate of GST on services provided by college hostel mess facilities. This circular addresses queries from educational institutions and third-party contractors regarding GST applicability on mess services for students and staff.</span></p><h4>Key Highlights:</h4><ol start="1"><li><span><strong>Taxability of Mess Services</strong>: The circular clarifies that the supply of food or drink by a mess or canteen within an educational institution is taxable at 5% without Input Tax Credit (ITC), as specified in Serial No. 7(i) of Notification No. 11/2017-CT (Rate), as amended by Notification No. 46/2017-CT (Rate) dated November 14, 2017.</span></li><li><span><strong>Outsourced Services</strong>: It is immaterial whether the mess services are provided by the educational institution itself or outsourced to an outside contractor. In both cases, the GST rate of 5% without ITC applies.</span></li><li><span><strong>Implementation Guidance</strong>: The circular emphasizes that any difficulties in implementing this guidance should be reported to the Board for resolution.</span></li></ol><p><span>This circular is instrumental in providing clarity and ensuring a uniform approach to the taxability of college hostel mess services across educational institutions in India.</span> <a href="https://cms.plasament.com/storage/circularno-28-gst.pdf">circularno-28-gst</a><br> </p>