Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 19-4-2018 Last Replied Date:- 22-4-2018 – Hi Sir, One of our client is a trust institution operating colleges. The institution has contracted with outside vendors for operating a canteen at its hostel premises wherein the vendors operate the kitchen, obtain all vegetables and thereafter also operate the hostel mess. The charges for such services are payable to the vendors on the basis of a fixed per meal charges. Charges for such hostel mess are collected from students upfront on lump sum basis. My query is whether this would constitute service of outdoor catering by the outside vendor and hence chargeable to GST @18% or suuply of food items and chargeable to 5% without ITC. Furth
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definition of 'supply' in GST. – Reply By CASusheel Gupta – The Reply = Dear Rohit In your case, the institution is collecting the charges from students and paying to the contractor on meal basis and the contractor is not collecting any amount from the students. As such the contractor is supplying to the institution and institution is supplying the the students (thought delivery to the students may be being done by the contractor) . You need to refer to the corrigendum to the circular no. 28/02/2018-GST which clearly states that (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 par
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