Question 6: Currently we are running a hostel for students residence under a Pvt. Ltd Company registered under GST wherein we are charging room rent inclusive of food facility from the students. The room rent essentially includes the food charges which are inseparable.

We run in house mess for supply of foods to students. The food is provided only to the resident students and not to any outsider. Our billing on students is only for room charges.

At present we are not charging any GST on room rent as it is categorized under the following exempt entry-

'Services by way of renting of residential dwelling for use as residence'

Whether we should consider it as composite supply or mixed supply'

Does the food provided to the students attract GST and if yes then at what rate.

Whether it will fall under the purview of recent notification which exempts the educational institutions having mess facility for providing food to their students and staff and prescribes the rate of 5% for supply of food or drink in a mess or canteen, provided by anyone other than the educational institution without ITC claim.

We have following queries in this regard

1.Whether our service falls under composite or mixed supply.

2.If it is a mixed supply, whether GST is leviable on food supplied to students. If yes then at what rate and availability of ITC in such case.

3.What would be the case if we outsource the mess to any contractor'

Answer 1. it is a composite supply as bundled in natural course and are supplied in conjunction with each other in the ordinary course of business and where accommodation by hostel is a principal supply.Thus according to section 8 tax liability is determined according to principal supply.

Recently in Press release dated. 19.01. 2018 on the 25th meeting GST council it is clarified that exemption of 1000 rs per day or equivalent (declared tariff) is available in respect of accommodation service in hostels.

where declared tariff increase from Rs 1000 per day then tax applicable under GST according to section 6 of Notification 11/2017 (Rate)

3. Outsource of mess is an inward supply.

A Copy of Press release dt. 19.01.2018 is enclosed here with. .(REPLY dt. 29/1/2018)