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Catering services in an educational institution

13 June 2020

Are all the catering services provided in educational institution are exempt. Or only those which are sponsored by governmental authorities.

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8 Replies

Rajkumar Patel (602 Points)
Replied 13 June 2020

All catering service but it should be within Enducation institution

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KRISSHNAN KP (4215 Points)
Replied 14 June 2020

All catering services provider must register under GST Act

Shivam RC (Student) (23683 Points)
Replied 14 June 2020

@ Harshit Sir,

As per Serial No. 66 of Notification No. 12/2017 - Central Tax ( Rate ), dated 28.06.2017, "Services provided by Educational Institutions to its students, faculty, staff is EXEMPT from GST."

Thus Catering Services provided by the Educational Institutions to its Students, Staff and Faculty will be Exempted from GST.

A Circular was issued to give clarification regarding this matter. As per Corrigendum to Circular No. 28/02/2018-GST, dated 08th January 2018, the following was clarified :

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) ]

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 @ 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.

Hence if the Catering Services is provided by Educational Institutions, then it is EXEMPTED FROM GST. If it has been outsourced by the Educational Institutions ( as covered in point 2 of above mentioned Circular ) , then GST @ 5% is applicable without the benefit of ITC.

Hope you understood Harshit...

Regards,
Shivam RC.

3 Like

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 15 June 2020

Yes Agree with Mr Shivam RC

Harshit Acharya (404 Points)
Replied 16 June 2020

Should not the ITC be given on it as food comes under blocked credit , but this input service is used to create an output service.
In which case ITC is available.
Or circulars and theses blocked credit provisions are different , it seems , if a particular circular is issued for a specific matter.
It has to be read in an isloated manner , not withstanding any other provision

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 17 June 2020

It's GST @ 5% on FC without ITC

Harshit Acharya (404 Points)
Replied 17 June 2020

FC MEANING?

Shivam RC (Student) (23683 Points)
Replied 17 June 2020

Harshit FC means "FORWARD CHARGE MECHANISM".

Which means that the Supplier needs to collect tax from the Recipient and deposit it to the Government. It's the Normal Mechanism which usually happens.