Contracting Caterer to Edu Institutes must Pay 5% GST, Self-Catering
Exempted
[Corrigendum dated 18.01.2018 to Circular No.
28/02/2018-GST dated 08.01.2018]
Subject:
Corrigendum to Circular No. 28/02/2018-GST dated 08th January 2018 issued vide F.No. 354/03/2018.
In
Para 2 of the said circular,
for
It
is immaterial whether the service is provided by the educational institution
itself or the institution outsources the activity to an outside contractor.
read,
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.
F.
No. 354/03/2018