5% GST will be on services of hostel-mess: Ministry of Finance

The Central Board of Excise and Customs (CBEC) has issued explanations for GST on the services offered by hostel 

New Delhi: GST will now be seen on the mess for college-school students and employees going to the office. Students and employees will get Goods and Service Tax (GST) at the rate of 5 per cent on the mess service. The Finance Ministry has said today that if the mess is run by the educational institution or by an outside contractor, the rate of GST will remain at five percent only.

The Central Board of Excise and Customs (CBEC) has issued explanations for GST on the services offered by hostel mess.

CBEC said, "GST will be charged at the rate of five per cent of input tax credit without supply of food and drink by Mess or Canteen. At the rate, there will be no difference to the fact that the educational institution is operating itself by the mess or any outside contractor is running it.