GST on Supply of Food and Drinks in Educational Institutions - Clarification

· Only 5% GST on Restaurants in Schools and Colleges

· Direct Supply to Students Exempted

[MoF Press Release dated 11 April 2018]

With a view to remove any doubt or uncertainty regarding rate of GST applicable on supply of food and drinks in educational institutions, it is clarified that: -

i. GST rate on supply of food and drinks in a mess or canteen in an educational institution attracts GST at 5% without INPUT Tax Credit (ITC).

ii. If schools up to higher secondary level supply food directly to students, then the same are exempt from GST."