Is GST applicable on food, drinks supplied to students by schools? Here is answer from Finance Ministry

By: |
New Delhi | April 11, 2018 10:42 PM

The Union Finance Ministry on Wednesday said GST is not applicable on food and drinks supplied by schools directly to the students, while it is 5 per cent without input tax credit for mess and canteens in educational institutions.

GST, FINANCE MINISTRY, GST COUNCIL, Goods and Services Tax, ITC“If schools up to higher secondary level supply food directly to students, then the same is exempt from GST,” the ministry said in an official statement. (Reuters)

The Union Finance Ministry on Wednesday said GST is not applicable on food and drinks supplied by schools directly to the students, while it is 5 per cent without input tax credit for mess and canteens in educational institutions.

“If schools up to higher secondary level supply food directly to students, then the same is exempt from GST,” the ministry said in an official statement, clarifying about Goods and Services Tax (GST) on supply of food and drinks in educational institutions.

It said: “Supply of food and drinks in a mess or canteens in educational institutions attracts GST at five per cent without input tax credit (ITC).”

ITC is a facility that sets off tax paid on inputs against the final tax to be paid by consumers.

The GST Council, in November 2017, had cut tax rates for all restaurants, except those located in hotels with per day room tariffs of Rs 7,500 and above, to five per cent from 18 per cent without the ITC facility.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Niti Aayog inks pact with Dassault Systemes Foundation to support entrepreneurs
288% Indian CEOs confident on global economic improvement in a year: PWC
3India allows additional 3,675 tonnes of sugar export to UK under concessional duty quota