GST Circular 28 - Board makes a 'mess' of college hostel mess fees

Sir, it is nice article and quick response there on. Rate of 5% vide Sl.No. 7(i) of 11/2017-CT is not a conditional one, like 5% without ITC and 18% with ITC, as indicates in the circular. It specifies the rate of 5% and NO ITC. Still the circular is not comprehensive in the subject matter. Canteen services provided by educational institute to other than it's students, faculty and staff , like provided to visitors are still taxable. Further the wordings ".... supply of service at entry (i) of notification No. 11/2017-CT (Rate) [as amended vide notification No. 46/2017-CT (Rate) dated 4.11.2017] to the concerned educational institution..." are not clear. Services provided by outsider to the educational institute would be catering services and the same provided to educational institute (providing education upto 10+2) are exempted vide sl.no. 66(b) of 12/2017 and in case same provided to other educational institutes it would attract 18% (with ITC) vide sl.No. 7(v) of 11/2017. However, in the context of circular, if such services are provided by outside contractors to the students, staff or anybody in the canteen located in the educational institute it would be services which attract 5% (no ITC) vide Sl.No. 7(i) of 11/2017. Hence, it appears some more clarity is required in this regard

mallikarjun reddy c 22/01/2018