Is GST applicable on mess?

5\% GST on restaurant services including room service and takeaway provided by restaurants located within a hotel featuring room tariff less than Rs. 7,500. 5\% GST on any food/drink (non-alcoholic) served at cafeteria/canteen/mess operating on contract basis in office, industrial unit, school, college, hostel, etc.

Is GST applicable in educational institutions?

In a nutshell, every attempt is made to ensure that the core educational services are fully exempt from GST. Explanation: Educational services provided by an educational institution shall be exempted only if the services are provided to its students, faculty or staff.

Is GST applicable on school rent?

The GST Act tries to maintain a fine balancewhereby core educational services provided and received by educational institutions are exempt and other services are sought to be taxed at the standard rate of 18\%.

Can educational institutions claim ITC?

In the opinion of the author it is advised that educational institutions should not claim ITC or claim only that ITC which is directly in relation to a taxable supply.

Is GST applicable on hostel fees?

MUMBAI: The Maharashtra bench of the Authority for Advance Rulings (AAR) has held that hostel fees charged to students will not attract goods and services tax (GST) where the rent per room is less than Rs 1,000 per day, per person. This will be subject to a ‘nil’ rate under Entry Number 14.

Is educational Institute exempted from GST?

Income from education is wholly exempt from GST if a charitable trust is running a school, college or education institution for abandoned, orphans, homeless children, physically or mentally abused persons, prisoners or persons over the age of 65 years or above residing in a rural area.

Are educational institutions Taxable?

i) The first class of educational institutions dealt with Income Tax is which is financed by Government. ii) Any income received by any university or educational institution existing solely for purpose of education and is financed by Govt. is fully exempt from tax u/s 10(23C)(iiiab). institutions.

Are educational services taxable?

Sales of live in-person educational services are not taxable. Sales of live digital online educational services are not taxable. Sales of digital books and videos and tangible books and videos are generally taxable. Sales of pre-recorded seminars and webinars (downloaded or streamed) are generally taxable.

Is hostel residential or commercial?

As per GST and Service Tax law it is to be treated as commercial. (ii) As you said, no attachment with educational institution even students and teachers are residing there, so your ‘hostel’ is equal to ‘Hotel’, P.G.

Is GST applicable on PG?

Any supply made in a personal capacity by a person does not mean ‘supply’ thus, it cannot be charged under GST. Now that PG services are categorised as supply following Section 7 of the CGST Act, we must check if it is a supply of service or goods according to Schedule II of the CGST Act.

Are educational institutions taxable?

What is the GST rate for hostel facility?

Hostel facility mainly includes mess and lodging services. The Mess facility provided to students and staff attracts 5\% GST. Immaterial of whether it is served by the educational institution or an outside (foreign) contractor, services related to food or drink provided by a mess or canteen is always taxable at 5\% without Input Tax Credit.

Is mess facility allowed in educational institutions under GST?

In response, the Tax Research Unit (TRU) issued a circular no. 28/02/2018-GST dated 08/01/2018 and clarified as under:- “The educational institutions have mess facility for providing food to their students and staff. Such facility is either run by the institution/ students themselves or is outsourced to a third person.

Are hostel and mess facilities provided by an educational institution taxable?

In light of the above, and more particularly in the light of the aforesaid circular, there was no doubt regarding the fact that hostel and mess facilities provided by an educational institution (as defined) is taxable at Nil rate. At-least till 26th July, 2018.

What is the GST on lodging and boarding services in schools?

Now, the Lodging and Boarding services served by educational institutions in hostels from the pre-school to higher secondary level are exempted from GST while 18 per cent GST is imposable on the annual fees payable to the schools/hostels for lodging.