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hostel mess fee

20 June 2018

Accommodation is provided to working womens along with Mess facility....room rent is below 1000 ,mess fee comes around 6000...Is gst applicable...

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5 Replies

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 20 June 2018

Yes applicable because its composite supply crossed 1000

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Vinod Babu (24191 Points)
Replied 20 June 2018

Yes it is composite supply.

Vishnu Das (145 Points)
Replied 20 June 2018

what rate should be collected

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 20 June 2018

AS PER SCHEDULE III ,SERVICES BY an Employee to the employer in the course of employment is exempted (non gst)

IF in the contract/appointment letter of employee if it is mention such services being provided to employer then its exempted but the mess facility is taxable as per Premise of Advance Ruling Judgment in case of Caltech Polymers pvt ltd,. Kerala, the supply of food in canteen from employer to its employee is cover under the defination of supply under section 7 Cgst Act

So, in case of accomodation charges if it is in contract then it is exempted else taxable & in case of mess facility its 100% taxable ( @ 5% gst without ITC)