Hostel mess facility to attract 5% GST without input tax credit, clarifies finance ministry

The Central Board of Excise and Customs (CBEC) has issued the clarification in view of queries regarding the tax liability and the rate of Goods and Services Tax (GST) leviable on services provided by a college hostel mess

PTI January 10, 2018 17:51:00 IST
Hostel mess facility to attract 5% GST without input tax credit, clarifies finance ministry

New Delhi: Mess facility provided to students and staff will attract 5 percent GST irrespective of whether it is provided by educational institution or outside contractor, the finance ministry said on Wednesday.

Hostel mess facility to attract 5 GST without input tax credit clarifies finance ministry

Representational image. PTI.

The Central Board of Excise and Customs (CBEC) has issued the clarification in view of queries regarding the tax liability and the rate of Goods and Services Tax (GST) leviable on services provided by a college hostel mess.

"Supply of food or drink provided by a mess or canteen is taxable at 5 percent without Input Tax Credit... It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor," the CBEC said.

The GST, which subsumes over a dozen local taxes, was rolled out from 1 July. Under the new indirect tax regime, various goods and services have been placed in four tier tax bracket -- 5, 12, 18 and 28 percent.

Updated Date:

also read

New GST rates to be introduced from 18 July: What gets costlier and what's cheaper?
Business

New GST rates to be introduced from 18 July: What gets costlier and what's cheaper?

Packaged food, bank cheques, and LED lamps and fixtures will attract more GST. A ropeway ride and orthopaedic alliances will become cheaper

Alternatives to single-use plastic: Delhi government to urge Centre to reduce GST rates on raw materials
India

Alternatives to single-use plastic: Delhi government to urge Centre to reduce GST rates on raw materials

The Delhi government will request Centre to reduce GST rates on raw material to manufacture alternatives to single-use plastics

Single, low tax rate would help reduce burden on poor, says Rahul Gandhi
India

Single, low tax rate would help reduce burden on poor, says Rahul Gandhi

Congress has demanded the scrapping of the current GST law, saying it has hurt the economy