Question 05:

GST liability in case of catening running in a educational instituation by themselve or any other person.

Answer

Circular No. 28/02/2018 dt. 08-01-2018 read with Corrigendum dt. 18-01-2018 clarifies regarding "GST on College Hostel Mess Fees"
as follows:
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.
2.2 If the catering services,i.e.,supply of food or drink in a mess or canteen, is provided by any one 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
Therefore if the canteen service is run by educational institution covered by the definition given under para 2(y) of Notification No. 12/2017-Central Tax (Rate) which is reproduced below, then the same is exempt:
"educational institution" means an institution providing services by way of,-
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course
Otherwise it will be taxable @ 5% provided that credit of input tax charged on goods and services used in supplying the service has not been taken. (reply dt. 05/15/2018)