Board rectifies the error in Circular by issuing Corrigendum
In this regard, Kindly refer Corrigendum dated 18 January 2018 issued by the Board rectifying the error in its earlier Circular 28 dated 08.01.2018.
For the benefit of netizens, the corrigendum reads -
In Para 2 of the said circular,
"It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor."
"2.1 If the catering services is one of the services provided by an educational institution to its students, faculty and staff and the said educational institution is covered by the definition given under para 2(y) of notification No. 12/2017-Central Tax (Rate), then the same is exempt. [Sl. No. 66(a) of notification No. 12/2017-Central Tax (Rate) refers]
2.2 If the catering services, i.e., supply of food or drink in a mess or canteen, is provided by anyone other than the educational institution, then it is a supply of service at entry 7(i) of notification No. 11/2017-CT (Rate) [as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017] to the concerned educational institution and attracts GST of 5% provided that credit of input tax charged on goods and services used in supplying the service has not been taken, effective from 15.11.2017."