Business News, Nation, (New Delhi), April 12:-Food and beverages distributed at educational institutions would be subject to Goods and Services Tax (GST) of five percent, the Centre clarified on Wednesday.
In an official notice, the Ministry of Finance stated that the GST on the supply of food and drinks in a mess or canteen in an educational institution would attract five percent tax sans Input Tax Credit (ITC).
The Ministry also noted that if schools up to higher secondary level supply food directly to students, the same would be exempt from the GST.
Earlier this month, the Centre notified that a uniform rate of five percent will be charged towards GST in all railway catering services in trains or stations.
As per the Central Board of Excise and Customs (CBEC), the decision was taken with a view to remove any doubt or uncertainty in the matter and bring uniformity in the rate of GST applicable to supply of food and drinks made available in trains, platforms or stations.
-(NAV, Inputs: Agencies)